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michelleworkingmom
Level 2

Clarification on self-employed family leave credit

Hi!  I am self-employed and I took a reduced schedule to take care of my children.  I entered this information into the system and it stated:  Good news: You qualify for a credit of zero for the family leave you took.  Then it says Your family leave credit $x,xxx.   (For privacy I put xx's, but it says a number amount). Are the words or number correct?  The total at the top is including the credit....

 

Also, can I take family leave credit and self-employed credit?   It looks like yes - but would like to confirm.

 

Also, as a result of the reduced schedule my income was lower in 2020.  Is it more beneficial to use my 2020 or 2019 income?  I tried both and it looks like does not matter...

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Accepted Solutions
npierson7
Level 1

Clarification on self-employed family leave credit

Yes, you can take both credits if you're eligible.

Under the expanded Family and Medical Leave Act (FMLA) provision of the FFCRA, you would be eligible for qualified family leave for each day that you were unable to work because

  • you were caring for someone else impacted by COVID-19 (up to 10 days), or
  • your child's school or child care provider was closed or unavailable due to COVID-19 (up to 50 days).

You can claim a tax credit for the lesser of $200 per day or 67% of your average daily self-employment income for the year per day.

 

AS for the Child tax credit and EITC, sometimes bigger AGI gives you bigger credits, or it could be similar amounts. 

View solution in original post

1 Reply
npierson7
Level 1

Clarification on self-employed family leave credit

Yes, you can take both credits if you're eligible.

Under the expanded Family and Medical Leave Act (FMLA) provision of the FFCRA, you would be eligible for qualified family leave for each day that you were unable to work because

  • you were caring for someone else impacted by COVID-19 (up to 10 days), or
  • your child's school or child care provider was closed or unavailable due to COVID-19 (up to 50 days).

You can claim a tax credit for the lesser of $200 per day or 67% of your average daily self-employment income for the year per day.

 

AS for the Child tax credit and EITC, sometimes bigger AGI gives you bigger credits, or it could be similar amounts. 

View solution in original post

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