COVID paid family leave

[nj08701]

if you filed for unemployment through PUA for April and May 2020 because you were caring for children whose daycare shut down due to covid and could not work can you also claim family leave refundable credit during that time (if you're self employed)?

[RayW7]

The COVID-19 pandemic has left self-employed workers, including freelancers and independent contractors, unable to work or facing a significant drop in revenue.

Fortunately, the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief and Economic Security (CARES) Act offer some self-employed tax credits that can help.

While you'll find an overview of how these self-employed tax credits can benefit you below, for additional guidance on coronavirus relief, be sure to check out our Self-Employed Coronavirus Relief Center to get up-to-date information and tax advice.

The tax credit for paid sick leave applies to eligible self-employed taxpayers who are unable to work (including telework or working remotely) due to:

1. Being subject to a federal, state, or local quarantine or isolation order due to COVID-19.
2. Being advised by a health care provider to self-quarantine due to COVID-19.
3. Experiencing COVID-19-related symptoms and seeking a medical diagnosis.

If you meet all of the requirements, you would be eligible for qualified sick leave for each day during the year that you were unable to work for the above reasons (up to 10 days). The tax credit is worth the lesser of

• $511 per day or
• 100% of your average daily self-employment income for the year per day.

The only days that may be taken into account in determining the qualified sick leave equivalent amount are days occurring during the period beginning on April 1, 2020, and ending on December 31, 2020.

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.

How do I calculate and claim these tax credits?

"Average daily self-employment income" is calculated as your net earnings from self-employment during the tax year, divided by 260. You can estimate your available credit using our Tax Credit Estimator.

You can claim a credit for both qualified sick leave and qualified family leave, but not both for the same time periods.

You can claim both the tax credit for paid sick leave and the tax credit for paid family leave on your 2020 Form 1040 tax return. However, you don't have to wait until the next tax-filing season to benefit from these credits. You can estimate your credits using our Tax Credit Calculator, then simply reduce your quarterly estimated income taxes by that amount.

[nj08701]

Thank you for the detailed response; however, you did not answer my question. I asked if the FMLA can be claimed for the same time period in which you claimed PUA? Also, you said that the paid sick leave cannot be claimed  for the same period as the FMLA. I do not believe that is true as I read online in a few places that they can be claimed for the same time period. Can you please show me where you read that they cannot?

[DMarkM1]

While a taxpayer can receive both, they cannot receive qualified sick leave wages and qualified family leave wages for the same period. 

See question 59 in this link.

[nj08701]

Thanks for clarifying that point! What about the original questions can umeployment be claimed for the same time period as the FMLA or sick leave tax credit?

[DianeW777]

Currently there is no income tax relief for unemployment compensation.  For more information from the IRS about this topic you can click here.

[LindaLee2]

I have been researching this same question.  Did you ever receive an answer?  For me (and probably for you, too) I'm wondering if a self-employed individual received unemployment benefits,  are you also able to take this federal family leave credit if it relates to the same period in which you also received PUA dollars.   I haven't seen this issue addressed elsewhere...at least not yet!

[npierson7 · Accepted solution]

Yes, you can receive both in the same time. You credit will be calculated on your average self-employment income per day, unemployment benefits won't be included in the calculation.

The tax credit for paid sick leave applies to eligible self-employed taxpayers who are unable to work (including telework or working remotely) due to:

1. Being subject to a federal, state, or local quarantine or isolation order due to COVID-19.
2. Being advised by a health care provider to self-quarantine due to COVID-19.
3. Experiencing COVID-19-related symptoms and seeking a medical diagnosis.

If you meet all of the requirements, you would be eligible for qualified sick leave for each day during the year that you were unable to work for the above reasons (up to 10 days). The tax credit is worth the lesser of

• $511 per day or
• 100% of your average daily self-employment income for the year per day.