How do I calculate the R&D tax credit?

To calculate the R&D tax credit, you’ll need to identify qualified research expenses such as wages, supplies, and contract research costs related to eligible R&D activities. The most common method is the Regular Credit or the Alternative Simplified Credit, each with its own formula based on historical R&D spending. Accurate documentation and proper classification are essential to ensure compliance. Working with a tax professional experienced in the R&D tax credit can help maximize your claim and avoid errors.