R&D Tax Credit Payroll Offset Maximizer

Model the federal R&D credit you generate, confirm whether you qualify for the payroll tax offset, and see how much credit remains to carry forward. Enter qualified expenses, prior-year gross receipts, payroll tax, years since first revenue, and any carryforward to size the election under the qualified small business rules in seconds.

Total Section 41 qualified research expenses for the current tax year, including wages, supplies, and contract research.
Gross receipts reported in the prior tax year — needed to confirm qualified small business eligibility.
Quarterly employer Social Security (6.2%) tax you expect to report on Form 941 across the elected credit period.
Count complete tax years since your first gross receipts to confirm you are within the five-year startup window.
Optional — defaults to $0.00 when blank. Include any prior-year federal credit that remains available to offset tax.

This tool simplifies federal R&D credit calculations. Coordinate with your tax advisor to confirm eligibility and claim elections.

Examples

  • Example 1 — $1,100,000.00 QRE, $3,000,000.00 gross receipts, $80,000.00 payroll tax, 3 years since first receipts, $15,000.00 carryforward ⇒ New credit generated: $110,000.00 | Total credit available: $125,000.00 | Payroll tax offset: $80,000.00 | Remaining credit: $45,000.00 | Status: Eligible for payroll offset (64.00% applied)
  • Example 2 — $600,000.00 QRE, $6,200,000.00 gross receipts, $55,000.00 payroll tax, 6 years since first receipts ⇒ New credit generated: $60,000.00 | Total credit available: $60,000.00 | Payroll tax offset: $0.00 | Remaining credit: $60,000.00 | Status: Not eligible for payroll offset (0.00% applied)

FAQ

How many quarters can I apply the payroll offset?

The offset applies against employer Social Security tax starting with the quarter you file Form 941 and continues across subsequent quarters until the elected amount is exhausted.

What if my qualified expenses change after filing?

Recompute the credit with updated QRE totals and amend Form 6765 or Form 941 to true up the payroll offset election if the credit shrinks or expands.

Can I include state R&D credits?

State credits do not count toward the federal payroll offset. Track them separately for state income tax planning and cash-flow modeling.

Does venture funding affect eligibility?

Only gross receipts matter for the payroll offset. Include any revenue-like receipts but exclude capital contributions from investors when tallying the prior-year figure.

Additional Information

  • Calculator applies a simplified 10% statutory rate to qualified expenses and enforces the $250,000 payroll offset cap.
  • Eligibility requires prior-year gross receipts at or below $5 million and five or fewer tax years since first receipts.
  • Total credit available equals current year credit plus any carryforward entered.
  • Applied percentage shows how much of the available credit is consumed by the payroll election.
  • Any unused balance is shown as a carryforward that can offset future income or payroll tax filings.

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