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HEB1022
Level 2

Covid19 Sick Leave - Self Employed

I am self employed.  My understanding of the Family's First and CARES act, that self employed workers impacted by COVID19 can apply for up to 2 weeks sick leave (up to $511 per day) as a refundable tax credit taken against self-employment taxes.  Can anyone confirm if that is accurate, and if so, how do you apply for it?  I am using TT Home and Business.  

 

Thanks in Advance

1 Best answer

Accepted Solutions
KathrynG3
Expert Alumni

Covid19 Sick Leave - Self Employed

Please see the IRS site for the details currently available: COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

15. Are similar tax credits available to self-employed individuals?

Yes. The FFCRA also provides comparable credits for self-employed individuals carrying on any trade or business within the meaning of section 1402 of the Internal Revenue Code if the self-employed individual would be entitled to receive paid leave under the EPSLA or Expanded FMLA if the individual were an employee of an employer (other than him or herself).

 

 

COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

The Specific Provisions Related to Self-Employed Individuals begin at FAQ #60 on this page.

 

Related to your specific questions:

65. How does a self-employed individual claim the credits for qualified sick leave equivalent amounts or qualified family leave equivalent amounts?

 

The refundable credits are claimed on the self-employed individual’s Form 1040, U.S. Individual Income Tax Return, tax return for the 2020 tax year.

 

 

66. How can a self-employed individual fund his or her qualified sick leave equivalent and qualified paid family leave equivalent amounts before filing his or her Form 1040?

 

The self-employed individual may fund sick leave and family leave equivalents by taking into account the credit to which the individual is entitled and will claim on Form 1040, U.S. Individual Income Tax Return, in determining required estimated tax payments. This means that a self-employed individual can effectively reduce payments of estimated income taxes that the individual would otherwise be required to make if the individual was not entitled to the credit on the Form 1040.

 

@HEB1022

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5 Replies
AmyC
Expert Alumni

Covid19 Sick Leave - Self Employed

As a self-employed person, you may be on a W2 or  may not. The laws affecting you vary depending on your circumstances. 

  • You can apply for unemployment pay through your state website for the first time.
  • Self employed can also apply for an SBA loan of $10,000 which may be considered a grant. Please see SBA Loans website.
  • Small and medium sized businesses can qualify for the 2 weeks of sick leave paid for employees.   $511 per day payroll credit for small and midsize employers for the 80 hour sick leave. See the first link below.
  • There is also a paycheck protection program for employees. See PPP Information Sheet
  • You may qualify for money from Quickbooks, see QB help for Small Business

Please see:
US Chamber of Commerce, What Businesses Need to Know CARES

Small Business Relief Inititiative

Intuit Blog

COVID-19 Microsite

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HEB1022
Level 2

Covid19 Sick Leave - Self Employed

Thanks Amy.  I'm not sure this addressed my need totally.  I am self employed, and looking for the process/forms/etc to file the sick leave benefits from Families First act, that was extended to self employed with the CARES act.  Is that covered in your post?  I can't find that.

 

Thanks in advance,

 

Harry

KathrynG3
Expert Alumni

Covid19 Sick Leave - Self Employed

Please see the IRS site for the details currently available: COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

15. Are similar tax credits available to self-employed individuals?

Yes. The FFCRA also provides comparable credits for self-employed individuals carrying on any trade or business within the meaning of section 1402 of the Internal Revenue Code if the self-employed individual would be entitled to receive paid leave under the EPSLA or Expanded FMLA if the individual were an employee of an employer (other than him or herself).

 

 

COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs

The Specific Provisions Related to Self-Employed Individuals begin at FAQ #60 on this page.

 

Related to your specific questions:

65. How does a self-employed individual claim the credits for qualified sick leave equivalent amounts or qualified family leave equivalent amounts?

 

The refundable credits are claimed on the self-employed individual’s Form 1040, U.S. Individual Income Tax Return, tax return for the 2020 tax year.

 

 

66. How can a self-employed individual fund his or her qualified sick leave equivalent and qualified paid family leave equivalent amounts before filing his or her Form 1040?

 

The self-employed individual may fund sick leave and family leave equivalents by taking into account the credit to which the individual is entitled and will claim on Form 1040, U.S. Individual Income Tax Return, in determining required estimated tax payments. This means that a self-employed individual can effectively reduce payments of estimated income taxes that the individual would otherwise be required to make if the individual was not entitled to the credit on the Form 1040.

 

@HEB1022

HEB1022
Level 2

Covid19 Sick Leave - Self Employed

Thank you very much.    

 

Harry

brisque
Level 2

Covid19 Sick Leave - Self Employed

How does the self employed family leave credit interacts with PUA? 

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