03 Feb 2021 Self-Employed: COVID-19 Tax Credits
Self-employed individuals may be entitled to tax credits related to COVID-19.
A self-employed individual who regularly carries on a trade or business, and would have been eligible for qualified sick leave and/or qualified family leave wages had they been an employee of an employer (other than themselves), may be entitled to claim tax credits.
Sick Leave Credit
The potential credit for Sick Leave is determined by how many days (up to 10) from April 1, 2020 – December 31, 2020, you were unable to perform services, as a self-employed individual, because of one or more of the following reasons:
- You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.
- You were advised by a health care provider to self-quarantine due to concerns related to COVID-19.
- You were experiencing symptoms of COVID-19 and seeking a medical diagnosis.
Family Leave Credit
The potential Family Leave credit is determined by how many days (up to 50, not including days used for Sick Leave) from April 1, 2020 – December 31, 2020, you were unable to perform services as a self-employed individual because of coronavirus-related care you provided to your child whose school or place of care was closed or whose childcare provider was unavailable for reasons related to COVID-19.
Reminder: When submitting your tax documents this year, remember to include the number of days you experienced lost wages due to COVID-19.
Contact your Haynie & Company CPA to calculate these credits. We can provide comprehensive consulting on tax credits, PPP, stimulus, and more.