1099 Self-Employed Tax Credit
What is it?
A tax credit for self-employed individuals who's work was impacted by COVID.
In March 2020, the Families First Coronavirus Response Act (FFCRA) was enacted to provide sick leave and unemployment benefits for COVID-19, primarily targeting W-2 employers to mitigate pandemic-related economic impact.
In December 2020 Congress expanded the Coronavirus Aid, Relief, and Economic Security (CARES) Act, making self-employed individuals and gig workers eligible for tax credits to compensate for COVID-related income losses.
How do I qualify for this credit?
Identify as a self-employed individual
You must have filed a Schedule SE of IRS Tax form 1040 in 2020 and/or 2021 with a positive net income and paid self-employment tax on your earnings.
You were absent from work due to COVID.
The absence can be for a variety of reasons, including:
- Following a federal, state or local quarantine or isolation order
- Advised by a healthcare provider to self-quarantine
- Providing care for a child or other person under a government-mandated or self-imposed quarantine
- Looking after a child when their school or daycare is closed
- Recovering from illness related to a COVID vaccine*
- Seeking or waiting for results from a COVID test*
Did COVID affect your business?
You might be eligible for qualified sick leave for each day during the year that you were unable to work due to COVID.
Contact our team for the details of this credit and to find out if you qualify!
*Only applicable if seeking credit for dates between April 1-September 30, 2021.