7202 Form for Covid-related work loss/Calculation Errors?

Forum|Forum|5 years ago
February 4, 2021
2 replies
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FYI, for anyone waiting for this form to become available, I calculated here on Turbo Tax Self Employed and it used my 2019 tax AGI, as I had also used this figure for EIC and Child Tax Credit due to lower income and given the option.

According to the downloaded form and trial using H & R Block Software, the calculations of refundable credits are VERY different.

It appears that Turbo Tax is using the given option for 2019 AGI to figure the amount, while H & R Block is using your AGI for 2020 even if you used this figure for the EIC and child credits. I realize these have not been finalized here at Turbo Tax, but according to the H & R Block Form 7202, it is both filable and fileable through them e file.

So, for anyone who maybe understands this form or tax language of the form:

If we are given the option for CREDITS using previous year's 2019 return, does this apply to the 7202 form, or are they going to actually go by minuscule income of 2020, where most of us lost income (which is why we are applying for the credit), and get a grand total of maybe $50?

It doesn't make sense to allow this credit when our average income was so low making us need the credit?

TurboTax Self Employed Online

Best answer by AmyC

Yes, you can use the higher of 2019 or 2020 income, just like the EIC. Form 7202 instructions state:

Election to use prior-year net earnings from self-employment. You may be able to use your prior-year net earnings from self-employment on line 7 to figure your credit for sick leave for certain self-employed individuals. You can make this election if your prior-year net earnings from self-employment were greater than your current year net earnings from self-employment.

7202 Form

Self-Employed Individuals Tax Center

AmyCAnswer

Level 15

Yes, you can use the higher of 2019 or 2020 income, just like the EIC. Form 7202 instructions state:

7202 Form

Self-Employed Individuals Tax Center

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wgfpd154Author

Level 4

I did a lot of leg work today to get to this same conclusion, and probably spent 2 hours trying to get a live person at the HR Block online support to let them know their form 7202 was not auto filling due to software error.

I contacted an actual tax office and confirmed they have had no issues e filing this form using 2019 AGI or SE income. I really wish the IRS or someone could confirm if mailing the 7202 means we need to mail our ENTIRE taxes by mail, or if we just fill out the 7202 and mail it.

DawnC

Level 15

Is it ok to not use 7202 even if it applied

Self-employed individuals use this form (Form 7202) to figure the amount to claim for qualified sick and family leave equivalent credits under the Families First Coronavirus Response Act. If you are eligible for those credits and want to take them, you need Form 7202 included with your return. If you don't qualify or don't want to take the credits, you can remove the form. TurboTax will calculate these amounts for you if you go through those sections, see below.

The Families First Coronavirus Response First Act, which was passed March 18, provides relief in the form of refundable tax credits for sick leave and family leave for both eligible self-employed and small business owners.

Self-Employed Tax Credit for Sick Leave. If you are self-employed, you may be eligible for a refundable tax credit equivalent to a qualified sick leave amount. Qualified sick leave is based on your average daily self-employment income.
Self-Employed Tax Credit for Family Leave. If you are self-employed you may be eligible for a refundable tax credit equal to 100 percent of a qualified family leave equivalent amount for eligible self-employed individuals.
Small Business Tax Credit for Paid Sick Leave. If you are a small business owner and paid sick leave wages to your employees you may be eligible for a refundable tax credit equal to 100 percent of qualified sick leave paid.
Small Business Tax Credit for Paid Family Leave. If you are a small business owner and paid qualified family leave wages to employees, you may be eligible for a refundable tax credit equal to 100 percent of qualified family leave wages paid.

@Liladimarco - There is a section under Deductions and Credits in TurboTax where you can enter the information to claim the credits.

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timothyfscott

Level 2

This form should include all zeros. For some reason 10 was put in line 3. we are retired. and not workin. why is this form included. It should not be required and is stopping us for e filing.

How can we get rid of form 7202

DawnC

Level 15

Line 3 is the number of days taken into account for determining the qualified sick leave equivalent amount and cannot exceed 10 days over all tax years. If you are retired and did not work or pay a household employee, then you can safely remove this form as it does not pertain to you. There may be one or two Form 7202s in your return. 7202-T and 7202-S can be removed. One is for the taxpayer and the other is for the spouse.

It's OK to delete forms that you know don't apply to your return, or are duplicated or blank. Here are the general procedures for deleting unwanted forms, schedules, and worksheets in TurboTax:

TurboTax Online

Open your return in TurboTax. (To do this, sign in to TurboTax, and select the Take me to my return button.)
In the left sidebar, select Tax Tools> Tools.
In the pop-up window Tool Center, choose to Delete a form.
Select Delete next to the form/schedule/worksheet and follow the onscreen instructions.

Windows Instructions

Switch to Forms mode.

In the left pane, select the form you want to remove. (if you don't see it, click Open Form at the top).
After the form is generated in the right pane, click the Delete Form button at the bottom of the window.
Follow any on-screen instructions to remove the form or forms.

Mac Instructions

Switch to Forms mode.

In the left pane, select the form you want to remove (if you don't see it, click Open Form at the top).
From the Forms menu, select Remove [form name].
Follow any on-screen instructions to remove the form or forms. @timothyfscott

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