Tech Startup Captures $64,000 in R&D Tax Credits
We are a SaaS startup with twelve employees building software for the healthcare industry. I had heard of R&D tax credits but assumed they were only for companies with laboratories and white coats. That assumption cost me tens of thousands of dollars before I found AE Tax Advisors.
The team walked me through exactly which of our development activities qualify for the credit -- and it was far more than I expected. Our software engineering, QA testing, cloud architecture work, and even some of our UX research qualified under the four-part test. They documented everything properly and calculated credits going back to the year we were founded.
On top of the R&D credits, they optimized our Qualified Business Income deduction. My old accountant was not properly calculating QBI, and as an S-Corp in the technology space there were specific rules he was missing. AE Tax nailed the calculation and maximized the deduction.
Total first-year savings came to $64,000. For a startup, that is a meaningful amount of runway. We redirected those savings right back into hiring another developer.
The team was incredibly responsive throughout the process. They use a client portal where I could upload documents and track progress. They also provided a detailed memo explaining the R&D credit methodology, which gave me confidence we would be covered in case of an audit.
Any tech company that is not claiming R&D credits is leaving money on the table. AE Tax Advisors makes the process straightforward and well-documented.