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Credits for Sick and Family Leave

With tax season in full swing, we want to revisit a very helpful credit contained in the Families First Coronavirus Response Act (FFCRA). If you are a small business owner, sole proprietor, or freelancer, you are not typically eligible for any type of sick leave, but the FFCRA changes that, at least as it relates to COVID-19. Here is a quick rundown of the credit.

Sick leave for yourself 

  • You qualify if you were self-employed and were unable to work due to quarantine, isolation order, self-quarantine, or had COVID-19 symptoms and were seeking a medical diagnosis.
  • The credit for a self-employed individual who was unable to work for one of the qualifying reasons is the lesser of $511 per day or 100% of the average daily self-employment income of the individual up to 10 days.

Sick leave for caring for someone else

  • You qualify if you were self-employed and were unable to work due to caring for someone else under quarantine or isolation, caring for a child whose school or child care was closed, or cared for someone experiencing symptoms of COVID-19.
  • The credit for a self-employed individual who was unable to work for one of the qualifying reasons is the lesser of $200 per day or 67% of the average daily self-employment income of the individual up to 10 days.

Qualified family leave

  • If you were unable to perform services for which you would have been entitled to paid family leave had you worked for an employer, you qualify for the family leave credit.
  • The credit is the lesser of $200 per day or 67% of the average daily self-employment income of the individual up to 50 days.

If you have not filed your 2020 taxes and missed work due to the pandemic, do not skip this credit. If you have already filed your taxes, you can file an amendment to claim the credit. Whether or not you have filed, IOOGO is here to help. Contact us today!

 

Join our webinar for Tax & Accounting Startups on Thurs., April 1st!

 

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