Self Employed Credit
Helping the self-employed get up to $32K per individual for Paid Sick and Family Leave.
For those that could not qualify for the ERC this is your chance but time is of the essence. One heavily impacted group that is often overlooked is that of self-employed professionals and sole proprietorships. This includes being a self-employed individual, encompassing various categories such as sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLCs. Additionally, you must have filed a Schedule SE of IRS Tax form 1040 in either 2020 and/or 2021, showing a positive net income and the payment of self-employment tax on your earnings. Furthermore, qualification entails having missed work due to issues directly related to COVID-19.
Thankfully, if you are one of the 16 million self-employed professionals across the U.S., relief is right around the corner. You’ll be happy to know that there is a government relief program specific to your needs that is still available to be claimed right now, and it is called the Qualified Sick & Family Paid Leave Wage Credit.
So what exactly is the Qualified Sick & Family Paid Leave Wage Credit?
In order to help employees/individuals cope with the losses coming as a result of the pandemic, the government issued paid sick leave days that could be used for reasons related to COVID. To account for these missed days for self-employed individuals, the government started offering a credit for the amount of work days missed due to COVID complications, such as:
Being unable to work due to federal, state, or local shutdown orders
Needing to take care of family members with COVID, or
Being placed in quarantine as a result of COVID exposure.
For those who missed out on work due to any of these circumstances, this credit could offer much needed assistance.
Why is this valuable?
Exactly how much is available to individuals? The total paid leave available is a result of two different government orders, the Families First Coronavirus Response Act (extended by the Consolidated Appropriations Act*), and the American Rescue Plan Act of 2021, taking into consideration the time period between 4/1/2020 and 9/30/2021, which add up to a maximum total of 130 days of paid leave. Depending on your situation, the combined provisions of these acts could add up to a maximum of $32,220 per individual, distributed as a refund. To be clear, this credit is not a loan. Eligible applicants will receive a check in the mail or direct deposit from the IRS corresponding to their credit amount.
How much does it cost?
The application to see how much the individual is eligible for is free. Once the individual knows exactly how much they are eligible for, the individual will have the option of allowing our specialists to amend their 1040 filing(s) for an upfront fee of $2,000.
Note – this fee is only due upon knowing how much the individual will receive back in the form of a tax refund.
Are there deadlines for claiming the Paid Sick and Family Leave Credits?
Yes. The deadline to amend your 2020 and/or 2021 tax return for claiming or adjusting Paid Sick and Family Leave Credits is three years from the original due date of the return. For the Paid Sick and Family Leave Credits, the deadline for amending your 2020 tax return is April 15, 2024, and for your 2021 tax return, it is April 15, 2025.