Claiming Your Self-Employed Tax Credit (SETC)
Coronavirus Paid Leave Tax Credits for Self-Employed Workers
You may be eligible for up to $32,220 in tax credits from 2020 & 2021
The SETC is a specialized tax credit designed to provide support to self-employed individuals during the COVID-19 pandemic. It acknowledges the unique challenges faced by those who work for themselves, especially during times of illness, caregiving responsibilities, quarantine, and related circumstances. This credit be a valuable resource for eligible individuals to help bridge financial gaps caused by unforeseen disruptions.
Almost everybody with Schedule C income qualifies to some extent.
In response to the coronavirus (COVID-19) crisis, an eligible self-employed individual was allowed to claim an income tax credit for any tax year for:
COVID-19: Credits for Sick and Family Leave for April 1st, 2020-March 31st, 2021
The American Rescue Plan Act Extended the dates from April 1st, 2020 to September 30th, 2021
In response to the coronavirus (COVID-19) crisis, an eligible self-employed individual was allowed to claim an income tax credit for any tax year for:
A qualified sick leave equivalent amount, under Section 9642 of the American Rescue Plan Act of 2021 (P.L. 117-2); and/or
100 percent of a qualified family leave equivalent amount, under Section 9643 of P.L. 117-2.
Key Eligibility Criteria
Filed The Original Returns:
• You FILED TAXES in 2020, 2021
Note: If you have not filed the years 2020 and 2021 returns, you may still be eligible, however, it would require an original filing and not an amendment. The fees would be based on the complexity of the returns.
Self-Employed Status:
If you were self-employed in 2020 and/or 2021, you could potentially qualify for the SETC. This includes sole proprietors who run businesses with employees, 1099 subcontractors, and single-member LLCs. If you filed a “Schedule C” or a Partnership (1065) on your federal tax returns for 2020 and/or 2021, you’re on the right track.
Note: Self-employed income is a limiting factor. If your self-employed income is low for 2019, 2020 and 2021, it will severly effect the outcome. If your self-employed income is negative for 2019, 2020 and 2021, you would not qualify for this program.
COVID Impacts:
Whether you battled COVID, experienced COVID-like symptoms, needed to quarantine, underwent testing or cared for a family member affected by the virus, the SETC could be your financial relief. If the closure of your child’s school or daycare due to COVID restrictions forced you to stay home and impacted your work, we’re here to help.
Qualifying Days:
Whether you battled COVID, experienced COVID-like symptoms, needed to quarantine, underwent testing or cared for a family member affected by the virus, the SETC could be your financial relief. If the closure of your child’s school or daycare due to COVID restrictions forced you to stay home and impacted your work, we’re here to help. Qualifying days would include;
You took time off in 2020 or 2021 due to COVID-19 or to care for someone with COVID-19 during the same period.
You took time off to care for a child under 18 years old due to school or daycare closures.
Claimable Days
The IRS considers specific timeframes for claiming the SE Tax Credit:
If you had COVID-19 and took time off between April 1, 2020, and March 31, 2021, or between April 1, 2021, and September 30, 2021, you can claim up to 10 days in each period.
If you cared for someone under eighteen years old between April 1, 2020, and March 31, 2021, you can claim up to 50 days. From April 1, 2021, to September 30, 2021, you can claim up to 60 days.
Note: Qualifying days is a limiting factor. If your qualifying days are low for 2020 and 2021, it will severly effect the outcome. If you have no qualifying days for 2020 or 2021, you would not qualify for this program.
Extremely Important. If Self-Employed and Employed through a W-2 in the same year
If you were both employed and self-employed in the years 2020 and/or 2021 and your employer paid you under the Families First Coronavirus Response Act for qualified sick and/or family leave wages, these wages MUST be disclosed by your employer on the Form W-2, box 14 or an equivalent supporting statement. The employer is required to disclose the amounts of qualified sick and/or family leave wages paid by category. These payments MUST be disclosed on this survey by category and year, which will reduce the allowable credit under the Self-Employed Tax Credit. Both the employer FFCRA and SETC program were credited under the Families First Coronaviris Response Act and therefore, you may not doubledip under both programs. The survey will request the amount paid by the employer broken down by category and by year.
Important Note:
Sub S or True S Corps / C Corps are not eligible for the SETC. This unique tax credit is exclusively available to business owners who filed a “Schedule C” or a Partnership (1065) on their federal tax returns for 2020 and/or 2021
What fee do we charge?
We charge no fees to do your calculations and verify if you qualify for the program. If you indeed do qualify for the program and wish to use us to file your documents with the Treasury then we charge $750 for each year you want to file and get paid a portion of what you receive. We get 15% of total refund you receive once you get paid and the check is in your hands. For example, John receives a $10,000 SETC refund. John agrees to pay us 15% ($1,500) of the $10,000 refund ONLY AFTER he receives his refund in hands. Never before. We only get paid if you get paid.
If you believe you qualify please book a consultation so we can process your refund
