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Level 3
posted Jan 10, 2022 1:36:04 PM

Self-employed Sick Leave for COVID 2021

My mother-in-law got COVID in July 2021, and we took a weekend off from our self-employment to go help care for her, as she lives alone. I am looking at the Self-Employed COVID sick leave help box in TurboTax 2021, and it says:

 

"All time off must meet the following requirements:
* It must be measured in whole days.
* It must have been taken on or after April 1, 2020 and not after December 31, 2020."

 

Is that end date correct? Does the self-employed COVID sick leave not count if it occurred in 2021?

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1 Best answer
Expert Alumni
Jan 10, 2022 8:16:17 PM

No that end day is not correct for 2021. According to this IRS link, the sick leave credit has been extended into 2021.

 

  1. Log into Turbo Tax
  2. Go the deductions and credits>tax relief related to COVID-19>show more
  3. Self-employed sick leave credit>start
  4. Answer the questions regarding the credit. It states in the link that you are able to claim because you are caring for an individual with COVID.
  5. According to IRS,  "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."

3 Replies
Expert Alumni
Jan 10, 2022 8:16:17 PM

No that end day is not correct for 2021. According to this IRS link, the sick leave credit has been extended into 2021.

 

  1. Log into Turbo Tax
  2. Go the deductions and credits>tax relief related to COVID-19>show more
  3. Self-employed sick leave credit>start
  4. Answer the questions regarding the credit. It states in the link that you are able to claim because you are caring for an individual with COVID.
  5. According to IRS,  "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."

New Member
Feb 1, 2022 5:11:22 AM

I followed the link provided and it appears that the date that you mention was extended was not actually extended to all of 2021 (assumed in your previous reply to a question), but actually the date range of April 1, 2021 - September 30, 2021. Would you please expand on if this is correct or if I am mis-reading the IRS link.

Tax Credits for Paid Leave Under the American Rescue Plan Act of 2021: Specific Provisions Related to Self-Employed Individuals | Internal Revenue Service (irs.gov)

Expert Alumni
Feb 1, 2022 6:29:27 AM

Yes, you are correct. The actual date from the link is April 1, 2021 to September 30, 2021.