Yes, you read that right. Self-Employed individuals are eligible for sick and family leave benefits too! Let’s look at the Form 7202 Credit.
Am I eligible?
Self-employed individuals who were unable to perform work as a result of their own healthcare, the care of a family member, or caring for a child if the child’s school or place of care was closed or unavailable due to COVID-19 precautions.
When & Why were you unable to work?
The credit depends on whether leave was taken to care for yourself or another individual and why. Yes, you can qualify for both sick leave and family leave, just not for the same dates.
Sick Leave
Up to 10 days between April 1, 2020 – March 31, 2021 and an additional 10 days during April 1 – September 30, 2021. For leave taken because you were:
- Subject to a Federal, State or local quarantine order, or
- Advised by a health care provide to self-quarantine, or
- Experienced symptoms of COVID-19 and was seeking a medical diagnosis
- Caring for an individual who was subject to a Federal, State or local quarantine order, or advised by a health care provide to self-quarantine, or
- Caring for a child if the child’s school or place of care was closed or unavailable due to COVID-19 precautions
Family Leave
An additional 50 days of leave to care for a child if the child’s school or place of care was closed or unavailable due to COVID-19 precautions during April 1 2020 – March 31, 2021 and April 1 – September 30, 2021.
How much is the benefit?
Complicated, however, the base is your net self-employment earnings from your Schedule C for the respective or prior year.
- Sick leave to due to your own quarantine order or illness – up to $511 per day
- Sick leave to care for a family member’s quarantine order or illness – up to $200 per day
- Family leave to care for a child due to school or childcare closure – up to $200 per day
How do I claim the credit?
The refundable credits are claimed on your individual income tax return in the year the leave was taken. We will amend your 2020 tax return for leave taken in 2020.
Still have questions about this? We’re happy to help. Send us a note or contact your primary team member at YHB.
