The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA).
Sick and Family Leave Tax Credits
Eligible self-employed individuals will determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. They’ll claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and Dec. 31, 2020, and on their 2021 Form 1040 for leave taken between Jan. 1, 2021, and March 31, 2021.
The FFCRA, passed in March 2020, allows eligible self-employed individuals who, due to COVID-19 are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax. The credits are equal to either their qualified sick leave or family leave equivalent amount, depending on circumstances.
Sick and Family Leave Tax Credits
Who may file Form 7202 – Eligible self-employed individuals must:
•Conduct a trade or business that qualifies as self-employment income, and •Be eligible to receive qualified sick or family leave wages under the Emergency Paid Sick Leave Act as if the taxpayer was an employee.
Taxpayers must maintain appropriate documentation establishing their eligibility for the credits as an eligible self-employed individual.
Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email Don.Fitch@CPA.com if you have any questions or would like additional information.
Sick and Family Leave Tax Credits
DON FITCH, CPA 74478 Highway 111 #3 Palm Desert, CA 92260
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Published by Don Fitch
At Don Fitch Accountancy, we are a Certified Public Accounting firm specializing in comprehensive tax preparation across all 50 states. Our professional services cover Unfiled tax returns for over 40+ years, IRS forms 1065 (Partnership), 1120 (C-Corporation), 1120S (S-Corporation), 1041 (Trusts), 709 (Gift Tax), 706 (Estate), and 5500 (Retirement). We are committed to providing accurate, reliable service and look forward to supporting your business and personal tax needs.
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