Eligible self-employed individuals can claim tax credits for sick leave and family leave under the Families First Coronavirus Response Act (FFCRA) using the new IRS Form 7202.
You can take the credits on your 2020 Form 1040, for leave taken between April 1 and December 31, 2020, and on your 2021 Form 1040 for leave taken between January 1 and March 31, 2021.
FFCRA Eligibility For Self-Employed:
- If you missed work because you were sick or quarantined due to COVID19
- If you missed work to care for someone sick or quarantined
- If you missed work to care for a child either because school is closed or the childcare provider is unavailable due to COVID19
Eligible self-employed individuals must:
- Conduct a trade or business that qualifies as self-employment income, and
- Be able to receive qualified sick or family leave wages under the Emergency Paid Sick Leave Act as if the individual was an employee.
- Maintain proper documentation that establishes their eligibility for the credits
FFCRA Benefits:
The credits eligible individuals can get are equal to either their qualified sick leave or family leave equivalent amount, depending on their situation.
The IRS website provided guidance to help you calculate the qualified sick leave equivalent amount and qualified family leave equivalent amount.
FFCRA Resources:
For more information, refer to additional resources:
- Form 7202
- Form 7202 instructions
- New COVID-19 Employer Tax Credits for wages from 3/13/2020 through 12/31/2020
- FFCRA Q&A
Need our help to get your credits? Levine and Associates provide reliable and proven services to process your sick and family leave tax credits. Book a commitment-free consultation with us at https://calendly.com/levine-and-associates or send us an email at josh@levineandassoc.com