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Self employed part time covid sick leave

My wife self employed but only part time (contract nursing). She only works 2 days a week and missed 4 days due to covid (equivalent of 2 weeks of work for her).  

 

The IRS website states:

the qualified sick leave equivalent amount is equal to the number of days during the taxable year that the individual cannot perform services in any trade or business for one of the three above reasons, multiplied by the lesser of $511 or 100 percent of the “average daily self-employment income” of the individual for the taxable year, or the prior taxable year.

 

She makes very good money on the days she works so she is limited to the $511 per day limit. Therefore I believe we are entitled to 4*511=$2044. However turbotax calculates her "average daily self employment income" it is assuming she works full time (260 days a year) and is therefore dropping us below the 511 limit. This isnt just an issue with turbotax as the form 7202 has the 260 days built into the calculation. If i put that she missed 10 days then we are getting way more than we should be entitled to.

 

What is the proper way to handle this unusual situation? Thanks in advance for any help on this.

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1 Best answer

Accepted Solutions

Self employed part time covid sick leave

Your calculation should be: her annual self employment income divided by 260 multiply by 10. Your wife missed two weeks of work, so you're entitled to claim the full amount of the credit. 

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2 Replies

Self employed part time covid sick leave

Your calculation should be: her annual self employment income divided by 260 multiply by 10. Your wife missed two weeks of work, so you're entitled to claim the full amount of the credit. 

Self employed part time covid sick leave

Thanks.

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