Absolutely! This particular tax credit refund is designed with self-employed individuals in mind. It’s also a great fit for small business owners, freelancers, and anyone working as a 1099 contractor. It’s all about giving a helping hand to those who run their own show in the business world.

You’re considered self-employed by the IRS if:

You operate as a sole proprietor or independent contractor. You’re a member of a partnership conducting a trade or business. You run any form of business yourself, including part-time or gig work.

Note: Self-employment income on Form 1040-SE is key for SETC eligibility. General partners’ income counts from all business income, while limited partners’ income is only from guaranteed service payments. For amendments, you can use 2019 or 2020 income for 2020, and 2020 or 2021 income for 2021 filings.

You’re considered self-employed by the IRS if:

To be eligible for FFCRA tax credits, here’s what you need:

Your Work Profile: You should be self-employed – think sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, or single-member LLCs.

Tax Filing Details: You must have filed a Schedule SE with your IRS Tax Form 1040 for either 2020 or 2021, showing positive net income and having paid self-employment tax on your earnings.

COVID-Related Work Absence: The key reason for missing work should be COVID-19 related, like being under a government-imposed quarantine or isolation order, or following a doctor’s recommendation to self-quarantine.

If you tick these boxes, you’re likely in the zone for FFCRA tax credits. Need more info or have other questions? Just let me know!

Note: Self-employment income on Form 1040-SE is key for SETC eligibility. General partners’ income counts from all business income, while limited partners’ income is only from guaranteed service payments. For amendments, you can use 2019 or 2020 income for 2020, and 2020 or 2021 income for 2021 filings.

To qualify for FFCRA tax credits, it’s essential that your work as a self-employed individual was interrupted due to specific COVID-related reasons. These include:

Quarantine Orders: Being unable to work because of quarantine or isolation orders imposed by a government agency.

Self-Quarantine Advice: Following a recommendation by a healthcare provider to self-quarantine.

Symptoms and Diagnosis: Experiencing COVID-19 symptoms and seeking a medical diagnosis or awaiting test results.

Vaccination and Side Effects: Missing work due to getting vaccinated against COVID-19 or dealing with its side effects.

Virtual school and School Closure Challenges: Caring for children during school or daycare closures caused by the pandemic.

Caring for Affected Others: Providing care for a family member who is dealing with COVID-19 related issues.

These criteria cover a broad spectrum of COVID-19 impacts, from health concerns to caregiving responsibilities, ensuring comprehensive support through the FFCRA.

If you have more questions or specific aspects you’d like further information on, feel free to ask!

COVID-Related Work Absence: The key reason for missing work should be COVID-19 related, like being under a government-imposed quarantine or isolation order, or following a doctor’s recommendation to self-quarantine.

If you tick these boxes, you’re likely in the zone for FFCRA tax credits. Need more info or have other questions? Just let me know!

Note: Self-employment income on Form 1040-SE is key for SETC eligibility. General partners’ income counts from all business income, while limited partners’ income is only from guaranteed service payments. For amendments, you can use 2019 or 2020 income for 2020, and 2020 or 2021 income for 2021 filings.

FFCRA (Families First Coronavirus Response Act) isn’t a loan and not quite a grant either. Think of it as a tax credit – a way to get back some of the taxes you’ve already paid. Here’s how it stands out:

Refund, Not a Loan: Since it’s a tax credit, it functions as a refund of taxes you’ve already contributed, not as a borrowed amount you need to repay.

Mimics Paid Leave Expenses: The structure of FFCRA credits mirrors the kind of support that mandatory paid leave provides to employees. It’s geared to cover expenses similar to those incurred during paid leave.

Eagerly awaiting your refund? Let’s break down the timeline: Once you’ve filed for your FFCRA credit, the IRS typically takes up to three weeks to give you a nod of acceptance. Think of it as the IRS giving your application a thumbs up. But the real countdown begins after this acceptance – it can take 16 to 20 weeks for your refund to make its grand entrance, via check.

Yes, you can! If you’ve got self-employment income alongside your W2 earnings in 2020 or 2021, you’re in the running for SETC tax credits. Just remember, if you received FFCRA wages through your employer, we’ll need to adjust your SETC credit accordingly to avoid double benefits. And if your employee benefits don’t cover everything, you might still be able to claim extra credits based on your self-employment.

No, it’s not. Here’s the good news: unlike Paycheck Protection Program (PPP) and the Employee Retention Tax Credit (ERTC), the Self-Employed Tax Credit (SETC) is not considered taxable income. This means when you claim SETC, it doesn’t add to your tax burden the way PPP and ERTC might have. It’s a financial perk without the extra tax strings attached.

The size of your SETC tax credit hinges on a few key elements:

• Your Schedule C or SE Net Income: This is drawn from your 2019, 2020, and 2021 tax returns. Your net income plays a major role in shaping the credit amount.
• Days Affected by COVID-19: This includes any days you were sick or had to quarantine due to COVID-19.
• Caring for a COVID-19 Affected person: If you spent time caring for someone impacted by COVID-19, this is factored in.
• Remote/Virtual learning, School Closures: If schools or daycare centers were closed or unavailable and you had to care for a minor child, this too influences your credit.

These elements collectively contribute to determining the tax credit you can expect. For a precise calculation, you might want to use a specialized tax credit calculator or consult a tax expert.

• The Client fee is a set rate of your total SETC refund. Our team of tax professionals will qualify, calculate and prepare all required paperwork ensuring your SETC application is filed within IRS compliance. We consider all tax codes and tax laws required to do this properly.

Fees are due once your application is complete and ready to file. Fees are to be paid all at once or you can opt to pay later at a higher percentage fee (25% to 30%). 

Examples: Paid upfront*

• Refund of $20,000 to 32,220 = Service fee of  $2,500
• Refund of $15,000 to $19,999 = Service fee of $2,250
• Refund of $10,000 to $14,999 = Service fee of $2,000
• Refund of $5,000 to $9,999 = Service fee of $1,750
• Refund of $2,999 to $4,999 = Service fee of $1,300

• SETC: A Special Focus for the Self-Employed
• FFCRA: The Employee-Oriented Counterpart

Not at all. It’s really straightforward – just select your days in our questionnaire. Then, upload your 2019 to 2021 tax returns and a copy of your driver’s license, and sign our agreement. That’s it! We handle the rest, ensuring a smooth and stress-free process for you.

The FFCRA (Families First Coronavirus Response Act) is a federal response to COVID-19, originally passed in March 2020. It started by aiding employers with W-2 employees, offering paid sick leave and unemployment benefits. By December 2020, under the CARES Act, it expanded to include the self-employed, freelancers, and gig workers, providing them with tax credits for lost work due to COVID-19. This broadened its scope, making it a comprehensive support system during the pandemic.

The FFCRA tax credit can reach up to a substantial $32,220.00, with its calculation rooted in your self-employed net earnings for both 2020 and 2021.

It’s not uncommon to be in the dark about the FFCRA tax credits. Initially, the focus of the FFCRA was on employers with W-2 employees. When the CARES Act came into play later in the same year, expanding these tax credits to include the self-employed, it didn’t get the spotlight it deserved.

This lack of widespread publicity is a key reason why many self-employed individuals remain unaware of their entitlement to these credits. In fact, research indicates that over 80% of self-employed persons are still in the dark about their eligibility for the FFCRA tax credits.

Staying abreast of such updates is crucial, especially when they can have a significant financial impact.

The PPP (Paycheck Protection Program) and the FFCRA (Families First Coronavirus Response Act) are indeed both responses to the economic fallout of COVID-19, but they cater to different needs.

PPP’s Role: The PPP is all about bolstering small businesses. It does this by offering loans, which can be forgiven if used primarily for payroll and other eligible expenses. It’s essentially a financial lifeline for businesses to keep their teams employed during the pandemic’s challenging times.

FFCRA’s Focus: On the other hand, FFCRA is not about loans but about providing tax credits. These credits are applied to taxes that individuals, especially the self-employed and employers, have already paid. Unlike the PPP, which is designed to support businesses directly, FFCRA is more individual-focused, offering relief to people impacted by COVID-19 related work disruptions.

While both play crucial roles in pandemic relief, their mechanisms of support differ significantly – one through loans for businesses and the other through tax credits for individuals

When determining eligibility for the SETC (Self-Employed Tax Credit), it’s your net self-employed income that’s under the microscope. This means you need to have a positive net income, which is your earnings after all allowable business deductions, for either 2019, 2020, or 2021. Additionally, your eligibility hinges on having specific days that qualify under the COVID-related criteria. It’s this combination of positive net income and qualifying days that shapes your eligibility for the SETC.

The amount of the tax credit you can receive is determined through a combination of specific criteria:

Income and Days Affected by COVID-19: Your average daily self-employment income and the number of days you missed work due to COVID-related issues, like quarantine or symptoms, are pivotal. This is used to calculate your potential credit.

Child Care Credit Calculation: If you took leave for childcare, your credit is the lesser of your average daily self-employment income or $511 per day.

Self-Employment Work Interruption Credit: If you missed work due to personal COVID-19 issues or caregiving, the credit is the lesser of two-thirds of your daily income or $200 per day.

Net Income and Caregiving Factors: Your net income reported on Schedule C for the tax years 2019-2021, the days you were sick or quarantined, and the time spent caregiving due to COVID-19, including periods when schools or daycare were closed, all play a role in the calculation.

The average FFCRA refund received by ERC Refund Hero customers typically stands at around $15,000. This figure, specific to IRSPlus’s clientele, offers insight into the substantial relief that the FFCRA program has provided to individuals affected by the pandemic. It’s important to note that this amount can vary based on individual circumstances, but for ERC Refund Hero customers, $15,000 is the average benchmark.

Get ready for a nice surprise in your mailbox! The IRS will dispatch a check for your 2020 and/or 2021 FFCRA tax credit directly to the address stated on your 1040-X . It’s like getting a special delivery just for you. But, keep in mind, if you’ve got any outstanding tax dues, the IRS will play the balancing act – using your refund to square off these liabilities first.

No need to worry about overwhelming paperwork. Our process is straightforward and secure:

Effortless Agreement Signing: You’ll receive a secure email to sign our “Client Agreement” electronically. Quick and easy!

Minimal Documentation: Just upload your tax returns for 2019, 2020, and 2021, along with your driver’s license and a secondary photo ID for compliance.

We Handle the Details: Once your documents are uploaded, our team takes over, managing everything from amendments to maximizing your entitlements.

Already Filed Your Taxes? If you’ve filed your 2020 and 2021 returns but need amendments for additional credits, we’re here to help with that too.

That’s it! We aim to make this process as seamless and efficient as possible for you.

Clock’s ticking, but there’s still time! Here’s the lowdown on those crucial FFCRA tax credit deadlines:

2020 Returns: The magic date for your 2020 tax return is April 15, 2024. It’s your key opportunity to claim those FFCRA credits for 2020.

2021 Returns: For your 2021 tax return, circle April 15, 2025, in your calendar. That’s your deadline to get those credits for 2021.

And here’s a handy rule of thumb: You’ve got either three years from the original due date of your return or two years from when you paid the tax (whichever comes later) to make any amendments for claiming or adjusting your FFCRA credits. So, if you’re looking to tweak your 2020 or 2021 returns for some extra credit, keep these dates in mind.

Worry not about your 2023 tax filings when claiming FFCRA tax credits – they’re like two ships passing in the night, not affecting each other. Here’s the lowdown:

Separate Lanes: Filing for FFCRA credits is a journey back in time, revisiting your 2020 and 2021 tax filings. It’s all about making tweaks to those years, not the upcoming 2023 tax season.

Expert Navigation: Our CPA crew is like your time-travel team, diving into your past filings (2020 and 2021) to skillfully amend them for FFCRA credits. They ensure everything’s shipshape without causing ripples in your 2023 tax voyage.

Smooth Sailing for 2023: Your 2023 tax filing remains unaffected, cruising along its usual course. So, you can breathe easy and focus on the here and now, knowing your past and future tax journeys are well taken care of.

The FFCRA tax credits cover specific periods for those unable to perform self-employment work due to COVID-19. Here’s a detailed breakdown:

Eligibility Period:

1. The covered timeframe is from April 1, 2020, to September 30, 2021.

Filing Deadlines:

1. For the 2020 tax return, the filing deadline to claim these credits is April 15th, 2024.
2. For the 2021 tax return, it’s due by April 15th, 2025.

Breakdown of Eligible Days:

1. Child care-Related Time Off:
2. Up to 50 days between April 1, 2020, and March 31, 2021.
3. Up to 60 days from April 1, 2021, to September 30, 2021.
4. Time Off for Yourself or a Loved One:
5. Up to 10 days between April 1, 2020, and March 31, 2021.
6. Another 10 days from April 1, 2021, to September 30, 2021.

This detailed timeline gives a clear view of the eligible dates and the amount of time you could potentially claim under the FFCRA tax credits.