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Under the Families First Coronavirus Response Act, eligible self-employed individuals can claim a Credit for Sick and Family Leave within their Individual Income Tax Return Form 1040.

This credit is claimed on Form 7202. The basis for this credit is the number of days the self-employed person is unable to perform services due to being by Covid-19 restrictions. The eligible Covid-19 restrictions include when the self-employed individual is subject to government-ordered quarantine, is seeking medical diagnosis for Covid-19 symptoms, is caring for an Individual affected by Covid-19, which includes caring for a son or daughter whose school or childcare provider is closed or unavailable due to Covid-19 precautions.

The maximum number of days to claim is 60 and the maximum credit you can claim for 2020 is $15,110.

For example, we recently had a client who is a self-employed person earning $85,000 in 2020. On Form 7202, they noted that they were required to care for their daughter for 50 days in 2020 due to the closure of their daughter’s childcare and school. This circumstance resulted in a $10,000 tax credit for the taxpayer.

You can still get the credit, even if you already filed your 2020 return.

This credit is available in 2020 and in 2021. If you have already filed your 2020 return, you may consider amending your return to obtain and possibly refund the credit. Please contact us to review your specific situation and to discuss the full range of qualifying events and credit eligible days.

DHJJ Advisory Services

DHJJ offers advisory services to clients for all aspects of taxation, including answering questions on the individual tax credits available to self-employed individuals due to COVID-19 and the Families First Coronavirus Response Act.

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