The Families First Coronavirus Response Act (FFCRA) entitles employers to payroll tax credits to cover the cost of leave for their employees who contract COVID-19.
But did you know that if you were self-employed and unable to work due to COVID-19, you may also be eligible for a tax credit?
A comparable emergency paid sick leave credit is allowed for self-employed individuals against their self-employment tax. The sick leave amount equals up to 10 days during the period of April 1 through Dec. 31, 2020, or between Jan. 1 through Sept. 30, 2021, that the self-employed individual could not perform services and would have been entitled to receive paid sick leave if he or she were an employee.
You could be eligible for up to $5,110 — 100% of average daily self-employment income, or $511 per day — if you were unable to work and:
Were subject to a federal, state, or local quarantine or isolation order related to COVID-19.
Were advised by a healthcare provider to self-quarantine due to concerns related to COVID-19.
Experienced symptoms of COVID-19 and sought a medical diagnosis.
Sought or awaited the results of a COVID-19 diagnosis between April 1 and Sept. 30, 2021.
Obtained a COVID-19 vaccination or recovered from vaccine side effects from April 1 to Sept. 30, 2021.
You could be eligible for up to $2,000 — 67% of average daily self-employment income, or $200 per day — if you were unable to work and:
Cared for an individual who was subject to a federal, state, or local quarantine or isolation order related to COVID-19, or who was advised by a health care provider to self-quarantine.
Took someone to get a vaccine or cared for someone recovering from vaccine complications.
Those who cared for a child whose school or place of care was closed, or childcare provider was unavailable due to COVID-19 precautions, could be eligible for up to $12,000 through a combination of sick leave and family medical leave, equivalent to a maximum of 60 days at $200 per day.
To claim the credit, documentation must be provided, such as the quarantine or isolation order, the name of the government entity or healthcare professional advising quarantine or isolation, the name and age of the child or children cared for, the name of the school which closed or place of care that was unavailable, and a statement that no other suitable person provided care for the child.
For vaccinations or tests, the date of the vaccination or test should be provided.
If you have any questions about the information above, please contact your E. Cohen advisor.