New Small Biz R&D Tax Credit for 2016, even if you’ve already filed!
The IRS gives some tips on how small businesses including S Corps (<$5M in Revenue & no gross receipts before 5 years prior) can deduct qualified Research & Development credits against the employer social security portion of payroll taxes.
An eligible small business can apply up to $250K of its research credit against its social security portion of its payroll liability with Forms 6765 (Credit for Increasing Researching Activities) with filing an amended return for 2016 (if you didn’t extend)
You’ll need Form 8974 (Qualified Small Business Payroll Tax Credit for Increasing Research Activities) to add when you file your Quarterly payroll taxes (Form 941), and apply the credit to your current payroll taxes.
You’ll have to file Form 6765 first, and you can take the credit on your next quarterly payroll, Form 941
Questions?.... let a tax professional know, we can help you navigate the credit.