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What if I have R&D expenses in a side business- can I use the credit to offset my main job's income tax?
by jhallenworld 9y ago
What if I have R&D expenses in a side business- can I use the credit to offset my main job's income tax?
- thephyber 9y agoNot an accountant, but the article states is applies against the business's social security taxes: > Beginning in 2017, qualified small businesses may claim up to $250,000 per fiscal year, applying it against their Social Security taxes.
- martinpannier 9y agoNo, unfortunately you can't.
- uiri 9y agoI am not an accountant. You may use a loss from a side business in order to offset W-2 income. No need for complicated tax credit forms. Look into the IRS rules around hobbies as they may get suspicious if your "business" loses money for years on end.
- toomuchtodo 9y agoThis is accurate (I take losses on an LLC occasionally against W2 income). Regarding business vs hobby criteria: https://www.irs.gov/uac/business-or-hobby-answer-has-implications-for-deductions https://www.irs.gov/uac/business-or-hobby-answer-has-implica...
- gamblor956 9y agoNo, the credit claimed for the side business can only offset income from the side business, and only if your side business is incorporated (but S corporations count).