I have credit for Qualified Small Business Research. How do I claim it?
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Last modified 9/24/2020 4:39:56 PM EST |
Added by ExpressEfile Team
Qualified small businesses can apply a part or all of their employer portion of social security tax to increase research activities for your business. Earlier, businesses could use only the income tax liabilities for qualified business research.
Since small businesses have a very low-income tax, they can use their social security tax liability to increase research activities for their business if they qualify for it.
You must file Form 8974 to find out the qualified payroll tax credit amount that you can use for the current quarter. If you have qualified small business research credit, you can claim it while filing Form 941 by entering the credit amount in line 11a of the form and attaching a copy of Form 8974 along with it.