Schedule RD-WAGE: Research and Development Tax Credits Schedule of Qualified Wages (2024)
Virginia · Virginia Tax · Used for tax years 2024
Virginia Schedule RD-WAGE reports qualified employee wages for the Research and Development Expenses Tax Credit or Major Research and Development Expenses Tax Credit. It lists employee names, Social Security numbers, salaries allocated to qualified research, and total qualified w
Who files this form
Complete Schedule RD-WAGE if you are claiming either the Research and Development Expenses Tax Credit or the Major Research and Development Expenses Tax Credit based on qualified employee wages. Use this schedule with Form RDC or Form MRD, whichever applies.
What you'll need
To complete the schedule, have:
- The tax year, name as shown on Form RDC or MRD, and FEIN or SSN.
- Each employee’s name and SSN.
- The salary allocated to qualified research for each employee.
- Form RDC or Form MRD, whichever applies, to enclose with this schedule.
The schedule refers you to the instructions for Form RDC or MRD for information about qualified employee wages.
How to file
Enter each employee’s name in Column A, SSN in Column B, and salary allocated to qualified research in Column C.
Enter total qualified wages on this schedule and on Schedule A, Section 1, Line 3, Column A of Form RDC or MRD, whichever applies. Enclose Schedule RD-WAGE with that form.
If you need more space, you may submit additional copies of Schedule RD-WAGE. You may also submit an electronic copy of the information using the same format as the schedule’s table. The schedule does not provide a mailing address or instructions for transmitting the electronic copy.
Common mistakes
- Leaving out employee SSNs. SSNs are required, and wages reported without them may not qualify for the credit.
- Including contractor expenses. Do not claim contractor expenses on Schedule RD-WAGE. Anyone who receives Form 1099 is considered an independent contractor, and their payroll expenses must be reported on Schedule RD-CON.
- Including excluded research expenses. Do not include expenses related to research conducted in Virginia on human cells or tissue derived from induced abortions or stem cells obtained from embryos.
- Omitting the total from the main form. Enter total qualified wages on Schedule A, Section 1, Line 3, Column A of Form RDC or MRD, whichever applies.
- Forgetting the attachment. Enclose this schedule with Form RDC or MRD.
Questions people ask
Which credits use Schedule RD-WAGE?
Use it when claiming the Research and Development Expenses Tax Credit or the Major Research and Development Expenses Tax Credit based on qualified employee wages.
Do I need to provide each employee’s SSN?
Yes. Column B requires employee SSNs. Wages reported without SSNs may not qualify for the credit.
Can I include payments to someone who receives Form 1099?
No. The schedule treats anyone who receives Form 1099 as an independent contractor. Report their payroll expenses on Schedule RD-CON instead.
What if I run out of space?
You may submit additional copies of Schedule RD-WAGE. You may also submit an electronic copy of the information in the same format as the table.
Where do I report total qualified wages?
Enter the total on Schedule RD-WAGE and on Schedule A, Section 1, Line 3, Column A of Form RDC or MRD, whichever applies.