Frequently Asked Questions
Established in 1981, the Research & Development Tax Credit is a federal incentive that allows companies to reduce income tax liability in the current tax year and receive a cash refund for taxes paid in the last three years. In 2015, when the Protecting Americans From Tax Hikes (PATH) Act was put into place, the R&D Tax Credit became permanent and greatly expanded the eligibility for businesses to qualify…including chiropractic and other healthcare practices. The Research & Development Tax Credit is intended to encourage businesses to invest in activities that lead to innovation in patient care, technological advancement, and economic growth. Many states have their own R&D Tax Credit, and qualifying businesses can claim both!
Most practitioners are unaware that their daily operations could qualify for a dollar-for-dollar Tax Credit. An activity that meets the 4-part test is a qualifying research activity and can potentially qualify for claiming R&D Tax Credit.
Determining your eligibility is very complex and fact-specific, as each practice’s activities and expenditures may vary significantly. The good news is we do all the heavy lifting to quantify and document exactly how and why you qualify for this credit. By providing us with tax and wage information we can figure it out over the course of an hour-long meeting where we will discuss what you and your staff do, how you do it and how much time you spend performing certain activities.
While it is impossible to give an estimate of the available tax credit/refund based on practice revenue or payroll, our average chiropractic client’s R&D tax credit refund is over $8,000 per year. Since the credit is retroactive up to 3 years and most our clients are applying for the first time, this means the average return for our clients is $24,000!
CPA’s specialize in keeping your business or practice compliant with tax laws. In other words, they exist to make sure you don’t get into trouble!
Because they are busy with this focus, they can often miss certain tax credits or deductions you may qualify for. This is why we specialize in this particular area, not to replace your CPA, but to work with them to make you more money!
The tax credit is immediately applied to your tax liability on your corporate tax return. This means that your benefit is calculated into your final tax due. As long as you filed your return timely, you will not have to wait for the IRS to issue a refund. If you did make an amended claim, that claim can take anywhere between six (6) months to nine (9) months to be processed.
All you have to do is schedule a FREE consultation call with us!
In fact we’re so confident we can find you money that we’ll pay you $100 if we can’t find you at least $10,000 in savings.