The IRS recently announced that new Form 7202 is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA), which was enacted in March 2020. The Consolidated Appropriations Act, 2021 extended the FFCRA tax credits for certain leave taken through March 31, 2021.
Eligible self-employed individuals can determine their qualified sick and family leave equivalent tax credits with the new IRS Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. They can claim the tax credits on their 2020 Form 1040 for leave taken between Apr. 1, 2020, and Dec. 31, 2020, and on their 2021 Form 1040 for leave taken between Jan. 1, 2021, and March 31, 2021.
The FFCRA allows eligible self-employed individuals who, due to COVID-19 are unable to work or telework for reasons relating to their own health or to care for a family member to claim refundable tax credits to offset their federal income tax.
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