Deductions & credits

@JohnW152 
Thanks John. I actually was reading about it after I posed the question and saw that on the IRS site, but I still appreciate your clear and concise response.

 

One thing they didn't consider when enacting the relief for self-employed folks is that you can't reduce your "gross" unemployment earnings (even if they did "replace" most of the lost "gross" earnings of 2020) with typical and constant self-employed expenses. So either way we (the self-employed) miss out on several thousands of $ from the EIC because the AGI remains too high in 2020 vis-à-vis 2019.

 

On the "plus" side they did allow for self-employment family leave which helped with a couple of grand and now the "possibility" exists of not taxing 2020 unemployment benefits on the federal level (different topic for another thread).

 

Thanks again.