Under the FFCRA act Sick and Family Leave was extended with the assistance of the government. For small businesses with employees this was handled through the 941 filing. For self-employed individuals, this can be taken on Form 7202 with your tax return to claim benefits from this legislation.
Form 7202 (Credits for Sick Leave and Family Leave for certain self-employed individuals) is a credit for those self-employed individuals affected by COVID. This credit is available for those self-employed individuals who had COVID, were quarantined due to COVID, or were caring for individuals with COVID. It also applies to those who needed to stay home to care of children when schools closed. The amount allowed is based on the net earnings from the Schedule C and is limited to up to $511/day if the business owner was sick with COVID and up to $200 per day if the business owner was caring for someone with COVID or a child at home due to school closings.
Note the amount calculated then goes to Schedule 3 as a REFUNDABLE credit. So, this not only offsets your tax liability but can also be refunded just like a payment. If you were closed down due to a COVID diagnosis or while caring for someone please make sure to mention it when submitting your documents.
Form 7202 (Credits for Sick Leave and Family Leave for certain self-employed individuals) is a credit for those self-employed individuals affected by COVID. This credit is available for those self-employed individuals who had COVID, were quarantined due to COVID, or were caring for individuals with COVID. It also applies to those who needed to stay home to care of children when schools closed. The amount allowed is based on the net earnings from the Schedule C and is limited to up to $511/day if the business owner was sick with COVID and up to $200 per day if the business owner was caring for someone with COVID or a child at home due to school closings.
Note the amount calculated then goes to Schedule 3 as a REFUNDABLE credit. So, this not only offsets your tax liability but can also be refunded just like a payment. If you were closed down due to a COVID diagnosis or while caring for someone please make sure to mention it when submitting your documents.
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