Payroll Tax Credits Reference

This table maps the main wage-based and payroll-related tax credits that appear in vendor marketing. Each entry shows the statutory hook (Code section), the type of tax it reduces, and the current enforcement posture. Click any row to see detailed eligibility tests, common disqualifiers, and key IRS guidance.

Credit Name Code Section(s) Tax Type Status

Select a credit

Summary

Click on a credit in the table to see details.

Code Sections

    Eligibility Tests

      Common Disqualifiers

        Key IRS Guidance

          Enforcement Notes

          Structured Compliance Triage

          This wizard walks through the same questions I ask clients when evaluating whether a payroll tax credit is on solid footing or drifting into "audit bait" territory. It highlights patterns that appear frequently in IRS guidance and enforcement actions.

          Answer honestly based on what your promoter or advisor is actually proposing, not what you wish they were saying. The output helps you decide when to slow down and get a real, written opinion from a tax professional.

          Compliance Summary

          Answer the questions and run the check to see a risk assessment for this credit claim.

          Promoter Risk Analysis

          There are two different questions in payroll tax credit compliance. One is whether a given credit exists in the Code and can apply to your facts. The other is whether the person selling it to you is behaving like a professional advisor or like a contingency-fee bounty hunter.

          This checklist focuses on the second question. It takes common red flags from recent IRS warnings and turns them into a risk score. If you find yourself checking most of these boxes, that's a strong signal to pause before signing anything.

          Promoter Risk Score

          Check the red flags that apply to your situation to see a risk assessment.

          Audit & Opinion Readiness

          The strongest tax positions share two traits: a plausible reading of the law, and paperwork that makes an auditor's job boring. This panel focuses on the second part.

          For the credit you're evaluating, mark which documents you already have. The readiness score shows how far you are from a file that can support a defensible filing. Low scores don't mean abandon the credit—they mean slow down, gather missing records, and ensure any opinion is built on facts you can prove.

          Documentation Readiness

          Opinion Readiness 0%

          Select a credit and check off the documents you have to see your readiness score.