Benefits for Self-Employed Workers

The Family First Coronavirus Response Act was enacted in March, 2020, at the height of the COVID pandemic. The tax credit may be available for business owners and self-employed individuals for days between April 1, 2020 and September 30,2021. It is intended to reimburse paid sick and family leave wages for workers who were unable to work due to COVID related care of self or dependents. The FFCRA credit is available to business owners and their employees, as well as 1099 contractors.

Employees may claim the credit on taxable income for days spent in COVID-19 quarantine–whether due to illness or virus exposure. They may also claim wages for days spent caring for children or dependents with COVID-19, or for instances of government-mandated quarantine. Individuals who were out of work due to immunization-related illness may also receive the credit. Self-employed individuals qualify for the FFCRA benefit so long as they have proof of filing taxes with 1099 status.

If you believe you may be eligible for the FFCRA tax credit or other financial benefit, please carefully review the eligibility requirements below.

The following documents are required for filing:

• Forms 1040 for 2019 – 2021 (Schedule SE)
• Forms W-2 for 2020 – 2021 (if applicable)
• Dates that COVID-19 impacted the individual 1099 or self-employed business owner

1099 Eligibility Requirements for the FFCRA Tax Credit:

• Individual must be 1099 or self-employed business owner
• Individual must provide net earnings statements from self-employment
• Individual must prove COVID-19 related qualifying care

Individuals may view all eligibility requirements at the IRS website.

If you believe you are eligible for the tax benefit, Loan Mantra and its financial partners may be able to help you. Reach out to us today!