Welcome to the forefront of financial empowerment for the self-employed in the era of COVID-19. Our in-depth guide on the Self-Employed Tax Credit (SETC) is your key to understanding and accessing crucial financial support during these unprecedented times. Initially part of the Families First Coronavirus Response Act and expanded under the CARES Act, the SETC is not just a lifeline but a powerful tool designed to counteract the economic disruptions caused by the pandemic.
How Much Can You Get? Discover how to calculate your SETC credit based on your daily average self-employment income and the number of workdays missed. With a potential credit of up to $32,220, understanding your entitlement could be a game-changer for your financial health.
Claiming Made Easy: Navigating the claim process is straightforward with our guidance. We recommend professional assistance to ensure you get the most out of your claim. Our user-friendly system is designed to help you amend your tax returns efficiently, ensuring you claim the credit you deserve.
SETC vs. PPP: Understand the differences between the SETC and the Paycheck Protection Program (PPP) and how each serves distinct aspects of pandemic relief.
Inclusive and Accessible: The SETC isn’t just for the traditionally self-employed. If you have mixed income sources, you might still be eligible. We'll help you navigate the intricacies of eligibility and ensure you don’t miss out on what you’re entitled to.
To determine eligibility based on self-employment for certain benefits or programs, you need to meet specific criteria for the years 2020 and/or 2021. The criteria include:
Eligibility extends to those who directly faced COVID challenges. Whether you suffered from COVID, showed similar symptoms, were under quarantine, went for COVID testing, or looked after family members impacted by the virus, the SETC is designed to provide financial support.
Please note, businesses structured as Sub S or True S Corporations/C Corporations do not qualify for the SETC. This tax credit is specifically intended for business owners who filed a “Schedule C” or a Partnership (Form 1065) with their federal tax returns for the years 2020 and/or 2021.
FREQUENTLY ASKED QUESTIONS
What if I already filed my 2020 & 2021 taxes?
Our CPA and EA's will need to file an amendment on your tax return. All we require from you is a copy of your 2019, 2020 and 2021 tax returns and a copy of your driver's license, and we’ll handle the rest.
What Documentation Do I Need To Provide?
For the most part, all we require is your 2019, 2020 and 2021 tax return including your schedule C and a copy of your driver's license for identification.
How much money can I expect to receive?
There are a few factors that go into calculating your tax credit refund amount. The biggest factors would be:
How is the amount calculated?
Eligibility for Self-Employed: Applicable if unable to work/telework due to:Government quarantine ordersSelf-quarantineCOVID-19 symptoms and seeking a medical diagnosis
What are all the ways to qualify?
To qualify for FFCRA credits you must have missed work because of COVID-related issues. If you were unable to work because of one of these reasons, you may be eligible:
What are the eligible dates?
The dates you can claim under FFCRA (SETC) income tax credit are between April 1, 2020 – March 31, 2021 and up to 10 days for dates between April 1, 2021 – September 30, 2021.
Here is a breakdown of the days:
Childcare related time off – up to 110 days
Yourself or loved one (other than child) – up to 20 days
What is a "child or other dependent" tax credit?
The Child Tax Credit helps families with qualifying children get a tax break. To have received a Child Tax credit or a credit for other dependents, you would have had to submit a Schedule 8821.
Can I claim tax credits if I am also a W-2 employee?
We’re sorry but we are unable to help W2 employees with filing for the FFCRA. You may still qualify for credit depending on if your employer filed for the FFCRA on your behalf. Consult a CPA for your specific situation.
"I recently sought help for claiming the Self-Employed Tax Credit and was amazed by the smooth, efficient process. The team made what seemed a daunting task incredibly simple, providing clear guidance every step of the way. Their expertise helped me secure a significant tax credit, offering much-needed financial relief during these challenging times. Highly recommend for anyone navigating self-employment tax complexities."
— Kathy S.
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