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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