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This version of the form is not currently in use and is provided for reference only. Download this version of
IRS Form 8974
for the current year.
IRS Form 8974 Qualified Small Business Payroll Tax Credit for Increasing Research Activities
What Is IRS Form 8974?
This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury on March 1, 2023. Check the official IRS-issued instructions before completing and submitting the form.
FAQ
Q: What is IRS Form 8974?
A: IRS Form 8974 is used to claim the Qualified Small Business Payroll Tax Credit for Increasing Research Activities.
Q: Who can use IRS Form 8974?
A: Qualified small businesses can use IRS Form 8974 to claim the payroll taxcredit for increasing research activities.
Q: What is the purpose of the Qualified Small Business Payroll Tax Credit?
A: The purpose of the payroll tax credit is to provide a tax incentive for qualified small businesses to engage in research and development activities.
Q: What are qualified small businesses?
A: Qualified small businesses are those with gross receipts of less than $5 million in the current tax year and no gross receipts for any tax year prior to the five-tax-year period ending with the current tax year.
Q: What expenses qualify for the research activities credit?
A: Expenses that qualify for the research activities credit include wages, supplies, and contract research expenses directly related to qualifying research activities.
Q: How is the credit calculated?
A: The credit is calculated based on a percentage of the qualified research expenses and the eligible payroll tax for the tax year.
Q: Can the credit be carried forward or back?
A: Yes, any unused credit can be carried forward to future tax years or carried back to prior tax years.
Q: Are there any deadlines for filing IRS Form 8974?
A: Yes, the form must be filed with the employer's annual income tax return by the due date, including extensions, of the income tax return.
Form Details:
- A 1-page form available for download in PDF;
- Actual and valid for filing 2023 taxes;
- Editable, printable, and free;
- Fill out the form in our online filing application.
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