USA Categorizing R&D payroll tax credits

[TimStackSource]

Hi Accountant Forums!

New member here, run an early stage tech startup. We just received our first check from the US Treasury for our quarterly R&D tax credit (offsetting payroll tax). I'm not sure how I should be accounting for these checks (we use Quickbooks if that matters). Any ideas?

Thanks!

- Tim

 

[Steve-LevelUp]

I recommend that you create a new expense account (R&D Tax Credit) and record the entry as an offset to the payroll tax credit. This allows it to be easily compared year over year. If you also capitalize anything, then you will need to re calculate your capitalization.