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Posted by whimsica on February 26, 2007, 1:13 am
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I am a sole proprietor. My company received a contract from
the dept of education to do research on science education
software. I was paid 66,000 in 2006 to do the research
which involved developing software. 15,000 went to another
independent contractors to peform a study based on the
research software. The 66,000 is considered income for my
business, and I have already deducted the independent
contractors 15K as business expenses.
Can invoking the research tax credit help me?
Can the credit be taken for my salary or just the
independent contractors. Also how much is the credit if we
made no income.
I've looked at form 6765 but it's hard to make sense of it.
It looks like I might be able to claim 1500 dollars
15000/2*.20. Is that correct?
What about the 66K-15K which is my salary because I did the
majority of the work. Can I consider that income in the
credit calculations or only what I paid the Independent
Contractors?
Thanks,
Daniel Savage
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