top of page
Business Meeting

SELF-EMPLOYED LEAVE FFFCRA ("SELF") TAX CREDIT

FFCRA.jfif
FFCRA 4.jfif

What is the FFCRA?

The Families First Coronavirus Response Act (FFCRA) established COVID-19 tax credits to reimburse business owners and self-employed individuals for offering paid sick and family leave wages to themselves and their employees. Specifically, the Self-Employed Leave FFCRA ("SELF") Credit is applicable for days spanning from April 1, 2020, to September 30, 2021, during which an individual couldn't work due to COVID-19-related self-care, caring for a child, or attending to others. Figure Financial's tax experts have streamlined a hassle-free process, allowing eligible individuals to retroactively claim the SELF Credit for qualifying periods.

2

Background

March 2020:

In response to the COVID-19 pandemic, the FFCRA is enacted to aid the United States in its battle against the virus. This legislation offers small and midsize employers refundable tax credits, reimbursing them on a dollar-for-dollar basis for the expenses incurred in providing paid sick and family leave wages to their employees for reasons related to COVID-19. Additionally, the FFCRA extends these refundable tax credits to self-employed individuals against their net income tax. Originally, the credits cover days taken between April 1, 2020, and December 31, 2020.

December 2020:

The Consolidated Appropriations Act of 2021 is passed, extending the initial FFCRA credit to encompass days between January 1, 2021, and March 31, 2021.

March 2021:

The American Rescue Plan Act of 2021 is enacted, introducing a second eligibility period for FFCRA credits. This new period covers days between April 1, 2021, and September 30, 2021, expanding the qualifying reasons for eligible days to include leave related to immunization.

3

IRS Guidelines for Qualifying Care (self, child, others)

  • You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.

  • You were advised by a health care provider to self-quarantine due to concerns related to COVID-19.

  • You were experiencing symptoms of COVID-19 and seeking a medical diagnosis of COVID-19.

  • You were seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of COVID-19.

  • You were exposed to COVID-19 or were unable to work pending the results of a test or diagnosis.

  • You were obtaining immunization related to COVID-19.

  • You were recovering from any injury, disability, illness, or condition related to such immunization.

  • You were caring for an individual who was subject to a federal, state, or local quarantine or isolation order related to COVID-19.

  • You were caring for an individual who had been advised by a health care provider to self-quarantine due to concerns related to COVID-19.

  • You were caring for a son or daughter because the school or place of care for that child was closed or the childcare provider for that child was unavailable due to COVID-19 precautions.

  • You were accompanying an individual to obtain immunization related to COVID-19.

  • You were caring for an individual who was recovering from any injury, disability, illness, or condition related to the immunization.

4

Additional Eligibility Requirements

ELIGIBILITY REQUIREMENTS

  • Self-employed business owner or recipient of 1099 income

  • Net earnings derived from self-employment

  • Qualifying care related to COVID-19

DOCUMENTATION REQUIREMENTS

  • Forms 1040 for the years 2019 – 2021 (including Schedule SE)

  • Forms W-2 for the years 2020 and 2021 (if applicable)

  • Dates specifying when the individual was impacted by COVID-19 care

Click here to start your FFCRA Application!

Get in Touch

PHONE: 1-313-204-2488

EMAIL: Info@Quantumstrategicconsulting.com 

bottom of page