The simplified method uses an average of the qualified research expenses (QREs) generated in the prior 3 years to calculate the R+D credit.
To calculate using the simplified method:
- Turn on the simplified method by selecting the ticker next to Simplified Method.
- Indicate the first year that the business had Qualified Research Expenses (QREs) by selecting it from the dropdown
- Note: Doing so will mark this year as QRE Year 1
- Confirm that the values given for QREs, Fiscal Start Date, and Fiscal End Date for each year are accurate.
- If any of your prior three years did not incur any QREs, deselect it by unchecking its box under Had QREs? This will remove the year from your base period and set its QREs to $0.00
- View your estimate in the top left under Current Estimate
