{"id":75,"date":"2022-02-19T19:24:33","date_gmt":"2022-02-19T19:24:33","guid":{"rendered":"https:\/\/www.thinkastute.com\/blog\/?p=75"},"modified":"2023-11-25T19:28:52","modified_gmt":"2023-11-25T19:28:52","slug":"rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return","status":"publish","type":"post","link":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/","title":{"rendered":"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) – Can you claim both on your tax return?"},"content":{"rendered":"

It\u2019s a pleasant surprise when you put on a jacket or pair of jeans and find several crisp twenty dollars bills in a pocket. It may even prompt you to check other pockets to see if there\u2019s additional cash lying around that you can put to good use.<\/p>\n

The same can be said for businesses that find extra cash \u2013 in the form of tax credits; companies of all sizes and sectors are always searching for more credits for their tax filing. Once you find these golden nuggets you can use them to grow your business. Fortunately, it\u2019s not as difficult as looking for a needle in a haystack. We will take a look at two valuable tax credits that you may have overlooked, which may lower your tax liability: Research & Development Tax Credit<\/a> (R&D) and the Employee Retention Tax Credit (ERTC).<\/p>\n

Calculate and Claim It<\/h3>\n

It\u2019s important to note that a tax credit isn\u2019t the same as a tax deduction. A tax credit is a dollar-for-dollar reduction in the amount of taxes owed.<\/p>\n

Since the R&D tax credit has been around for four decades, most businesses may be familiar with it. If not, here\u2019s a quick summary: Businesses that attempt to develop or improve products or processes<\/a> may be able to receive an R&D tax credit for eligible expenses that were incurred \u2013 even if it was an unsuccessful attempt. If you have not claimed a R&D tax credit, your company may be bypassing a valuable cash infusion.<\/p>\n

Catching a Break with the ERTC<\/h3>\n

Life as we knew it changed when the pandemic made its assault, and many businesses suffered a severe financial blow. This prompted Congress to create the Employee Retention Tax Credit (ERTC) in March 2020, which does not need to be repaid.<\/p>\n

Congress later amended and expanded the ERTC twice to enable more employers \u2013 who meet certain eligibility requirements \u2013 to take advantage of the credit.<\/p>\n

In essence, it provides financial relief for eligible employers in the form of a credit against certain employment taxes. It\u2019s been a lifeline for employers that were forced to shut down due to the pandemic or experienced substantial reductions in 2020 or 2021.<\/p>\n

Can your Business Benefit from both Credits?<\/h3>\n

The ERTC allows businesses to offset up to $5,000 of employer payroll taxes per eligible employee for 2020 and up to $7,000 per employee for 2021. Note: it\u2019s critical that you carefully track wages that were allocated to the R&D credit.<\/p>\n

The Employee Retention Tax Credit rules were revised for 2021 to exclude wages used to determine the ERTC from being treated as \u201cqualified research activities\u201d. Employers calculating ERTC and R&D credits should confirm that there is no overlap between the credits.<\/p>\n

If your company employs 100 or more full-time employees, you may claim only the ERTC on wages paid to employees who were not engaged in \u201cqualified research activities\u201d under the R&D Tax Credit. When calculating R&D wages pages, you should verify if workers were performing qualified research activities.<\/p>\n

Talk to an Expert to Learn if you Qualify<\/h3>\n

Each organization\u2019s facts and circumstances are unique and trying to decipher the IRS\u2019 provisions can be a complicated process<\/a>. Thus, it\u2019s wise to speak with an accounting firm that specializes in R&D and ERTC. Taking a proactive stance in tax planning will ensure you leverage claims for which you are eligible, giving your business a financial boost.<\/p>\n

Can I claim the ERTC and still get the R&D credit?<\/h3>\n

Qualifying businesses looking to claim both credits need to be careful as wages used to claim the ERTC are excluded from the calculation for the R&D tax credit. Businesses looking to claim both credits should take a thorough look at their qualified wages to ensure that they are maximizing the value they receive for both.<\/p>\n

Please connect<\/a> with me if you have questions.<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s a pleasant surprise when you put on a jacket or pair of jeans and find several crisp twenty dollars bills in a pocket. It may even prompt you to…<\/p>\n","protected":false},"author":1,"featured_media":77,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,5,13],"tags":[29,35],"class_list":["post-75","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-announcements","category-budgeting-forecasting","category-rd","category-rd-tax-credit","tag-ertc","tag-retention-tax-credit"],"yoast_head":"\nR&D Tax Credit OR Employee Retention Tax Credit (ERTC) - Can you claim both on your tax return? - ThinkAstute Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) - Can you claim both on your tax return? - ThinkAstute Blog\" \/>\n<meta property=\"og:description\" content=\"It\u2019s a pleasant surprise when you put on a jacket or pair of jeans and find several crisp twenty dollars bills in a pocket. It may even prompt you to…\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/\" \/>\n<meta property=\"og:site_name\" content=\"ThinkAstute Blog\" \/>\n<meta property=\"article:published_time\" content=\"2022-02-19T19:24:33+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-25T19:28:52+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"777\" \/>\n\t<meta property=\"og:image:height\" content=\"583\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ashwini Vasudeva\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ashwini Vasudeva\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/\",\"url\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/\",\"name\":\"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) - Can you claim both on your tax return? - ThinkAstute Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.thinkastute.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg\",\"datePublished\":\"2022-02-19T19:24:33+00:00\",\"dateModified\":\"2023-11-25T19:28:52+00:00\",\"author\":{\"@id\":\"https:\/\/www.thinkastute.com\/blog\/#\/schema\/person\/4dc8d121e3b3b9518f8628592a7ced4a\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#primaryimage\",\"url\":\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg\",\"contentUrl\":\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg\",\"width\":777,\"height\":583},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.thinkastute.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) – Can you claim both on your tax return?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/#website\",\"url\":\"https:\/\/www.thinkastute.com\/blog\/\",\"name\":\"ThinkAstute Blog\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.thinkastute.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/#\/schema\/person\/4dc8d121e3b3b9518f8628592a7ced4a\",\"name\":\"Ashwini Vasudeva\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.thinkastute.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2023\/11\/ashw-96x96.jpg\",\"contentUrl\":\"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2023\/11\/ashw-96x96.jpg\",\"caption\":\"Ashwini Vasudeva\"},\"description\":\"Ashwini Vasudeva, Partner and Co-Founder at Astute, advices clients on Financial stability, Sustained growth and Financial recovery. She assists companies on varies Licensing\/Royalty Compliance Audit, Technical Accounting, R&D Tax Incentive and Forensic Audit related work as well as works closely with clients\u2019 CFOs\/Controllers to develop stronger processes and controls within business. She has more than 15 years of experience in public accounting and various industries. Contact me\",\"sameAs\":[\"https:\/\/www.thinkastute.com\/blog\"],\"url\":\"https:\/\/www.thinkastute.com\/blog\/author\/admin_astute\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) - Can you claim both on your tax return? - ThinkAstute Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/","og_locale":"en_US","og_type":"article","og_title":"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) - Can you claim both on your tax return? - ThinkAstute Blog","og_description":"It\u2019s a pleasant surprise when you put on a jacket or pair of jeans and find several crisp twenty dollars bills in a pocket. It may even prompt you to…","og_url":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/","og_site_name":"ThinkAstute Blog","article_published_time":"2022-02-19T19:24:33+00:00","article_modified_time":"2023-11-25T19:28:52+00:00","og_image":[{"width":777,"height":583,"url":"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg","type":"image\/jpeg"}],"author":"Ashwini Vasudeva","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Ashwini Vasudeva","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/","url":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/","name":"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) - Can you claim both on your tax return? - ThinkAstute Blog","isPartOf":{"@id":"https:\/\/www.thinkastute.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#primaryimage"},"image":{"@id":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#primaryimage"},"thumbnailUrl":"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg","datePublished":"2022-02-19T19:24:33+00:00","dateModified":"2023-11-25T19:28:52+00:00","author":{"@id":"https:\/\/www.thinkastute.com\/blog\/#\/schema\/person\/4dc8d121e3b3b9518f8628592a7ced4a"},"breadcrumb":{"@id":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#primaryimage","url":"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg","contentUrl":"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2022\/02\/111.jpg","width":777,"height":583},{"@type":"BreadcrumbList","@id":"https:\/\/www.thinkastute.com\/blog\/rd-tax-credit-or-employee-retention-tax-credit-ertc-can-you-claim-both-on-your-tax-return\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.thinkastute.com\/blog\/"},{"@type":"ListItem","position":2,"name":"R&D Tax Credit OR Employee Retention Tax Credit (ERTC) – Can you claim both on your tax return?"}]},{"@type":"WebSite","@id":"https:\/\/www.thinkastute.com\/blog\/#website","url":"https:\/\/www.thinkastute.com\/blog\/","name":"ThinkAstute Blog","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.thinkastute.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.thinkastute.com\/blog\/#\/schema\/person\/4dc8d121e3b3b9518f8628592a7ced4a","name":"Ashwini Vasudeva","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.thinkastute.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2023\/11\/ashw-96x96.jpg","contentUrl":"https:\/\/www.thinkastute.com\/blog\/wp-content\/uploads\/2023\/11\/ashw-96x96.jpg","caption":"Ashwini Vasudeva"},"description":"Ashwini Vasudeva, Partner and Co-Founder at Astute, advices clients on Financial stability, Sustained growth and Financial recovery. She assists companies on varies Licensing\/Royalty Compliance Audit, Technical Accounting, R&D Tax Incentive and Forensic Audit related work as well as works closely with clients\u2019 CFOs\/Controllers to develop stronger processes and controls within business. She has more than 15 years of experience in public accounting and various industries. Contact me","sameAs":["https:\/\/www.thinkastute.com\/blog"],"url":"https:\/\/www.thinkastute.com\/blog\/author\/admin_astute\/"}]}},"_links":{"self":[{"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/posts\/75","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/comments?post=75"}],"version-history":[{"count":3,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/posts\/75\/revisions"}],"predecessor-version":[{"id":79,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/posts\/75\/revisions\/79"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/media\/77"}],"wp:attachment":[{"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/media?parent=75"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/categories?post=75"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thinkastute.com\/blog\/wp-json\/wp\/v2\/tags?post=75"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}