Submission + - How Does the R&D Tax Credit Work?
I am a quality assurance engineer at a software development company. In my day job, I have to use an application to track every task that I do throughout every day. The application requires time, project, application, case numbers, place, and a whole array of dropdown menus, radio buttons, and checkboxes to mark each time I change tasks. Needless to say, doing this is annoying and can take anywhere from an hour to two hours out of my day. This is time I could spend making a better product for our clients.
After some research, it looks like this application was created for the QA department because of Internal Revenue Code 41 aka the Research & Experimentation Tax Credit. IANACPA, but for receiving the credit for software tester's wages, it appears that testers only need to track the time they spend testing new projects, not tracking every employee's every move. (Bug fixes do not quality for the tax credit.)
How do you track new projects for this tax credit? Is time estimated by a manager, do you have a simple time tracking application, or do you have a "big brother" tracker too?