Self-employed family leave credit eligibility

[jbeckwith]

Hello,

I'm wondering if I'm eligible for the the self-employed family leave credit. I stayed home with my toddler from April-August 2020 because his daycare closed and my work dried up. I had self-employment (1099) income in 2019, but none in 2020. Just happened to not get that type of work last year, but I did have W2 income from multiple employers in 2020 as well as unemployment income. It says you can use your 2019 self-employment income to calculate the self-employed family leave credit if it's higher than your 2020 income (which was zero). I'm just not sure if having none of that type of income in 2020 makes me ineligible. 

Thank you in advance.

[CatinaT1]

Possibly.  This is done by completing Form 7202.  The IRS article will give you all the particulars on qualifying:  self-employed family leave credit

[jbeckwith]

Thank you for the response. I guess my question boils down to, can you still be considered self employed in a year where you have no self-employed income, and have W2 income? I had 1099 income in 2018 and 2019, and odds are I will have it again in 2021.

[AmyC]

If you truly have a business and income all the years before and after, it proves that you did have an established and were not able to operate in 2020 due to COVID and therefore qualify. 

Form 7202 Instructions:

You must maintain appropriate documentation to show that you are an eligible self-employed individual. Regularly carried on a trade or business. An individual regularly carries on a trade or business for purposes of being an eligible self-employed person if he or she carries on a trade or business within the meaning of section 1402