neo.tax

automated R&D tax credits for startups = extra month of burn

#4 Product of the MonthApril 2020
+2
neo.tax automates the R&D Tax Credit, giving startups roughly an extra month of burn. It's cheaper, faster and more accurate than human CPAs. It only takes 15 minutes to cut burn and extend runway without cutting headcount. Claim the money your startup’s owed!
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131 Reviews4.9/5
Maker
Hey Product Hunt! This is our first time as makers and we are super excited to share what we’ve been working on with everyone. Thanks for hunting us, @hnshah ! We are ex-IRS and ex-Intuit and are very passionate about making taxes (especially tax advantages!) accessible to everyone. neo.tax automates the R&D Tax Credit, giving startups roughly an extra month of burn: - get 10% of engineering and product development costs back - up to $250,000 back in the form of refunded payroll taxes - you’re eligible if you have US employees, <$5M in revenue and <5 years of revenue - neo.tax's fully automated product takes care of the entire process and filing in <20 min - built by a former IRS Agent (Stephen) and ex-Intuit product manager (Ibrahim) - cut costs and extend runway without cutting headcount Product Hunt special: schedule a quick call to walk through the process with one of us! https://calendly.com/aibrahima/p...
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Maker
If you care, here’s some background on the R&D Tax Credit and why you may not have heard about it before: In 1981, Congress and the IRS created the R&D Tax Credit to incentivize large, multinational corporations to bring innovation and high-tech jobs to the US so that future profits could be taxable in the US. The R&D tax credit was expanded to be more easily accessed by early-stage startups in 2016, since both Congress and the IRS realized that startups were innovating and creating high tech jobs more than anyone else. Since most startups aren’t profitable, they amended the R&D Tax Credit to refund payroll taxes, which every startup has to pay regardless of its profitability. That’s 6%+ of gross payroll expenses, up to $250,000 per year, refunded back! Most companies still fail to take advantage of the sizable returns available, either because they are unaware of the fairly recent change to the rules or their CPA thinks the rules are too complicated. Luckily, computers love computing things when there are lots of complex rules. watch video if you hate reading:
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We used Neo.tax to file our 2019 R&D tax credit and it was ridiculously easy. Did a 40 min Zoom call with the founders and that gets us back $20-30k in credit. This should be every founder's fiduciary duty to get done 🤑
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Maker
@kallefreese "fiduciary duty" sounds about right! definitely the best ROI on any founder's time.
Love the idea! @ibrahim1 at what stage should startups look into getting R&D refunds?
Maker
@abdella6if Startups with US employees, <$5M in revenue and <5 years of revenue are eligible. In our experience, that's usually pre-seed to late series A.
Loving how cleanly managed the integrations are. Amazing that it takes on the order of minutes versus days/weeks!
Maker
@zallarak thanks! That's what happens when you give complex rules-based number-crunching problems to computers to handle =]
Is this only beneficial for C corp, or LLC startups as well. I’m thinking wouldn’t my R&D costs be deducted as a expense anyway? Or is this different! Thank you
Maker
@brandonsassouni this is different from just being deducted. This is a tax credit that offsets and refunds your payroll tax, giving you money back every pay period (or ever quarter, depending on your payroll provider). And yes! -- you can do this for LLC startups.
Maker
@brandonsassouni what are you building?