• Home
  • /
  • Our Blog
  • /
  • COVID-19 Tax Credits For The Self-Employed

Recently enacted legislation provides tax credits for Sick Leave and Family Leave for certain self-employed individuals. The new law provides a tax credit for Sick Leave for eligible self-employed individuals who were unable to perform services during the period April 1, 2020, and December 31, 2020, due to certain COVID-19 related reasons. The credit is based on net earnings from self-employment and is limited to $511 per day for a maximum of 10 sick days.

The law also provides a tax credit for Family Leave for eligible self-employed individuals who were unable to perform services during the period April 1, 2020, and December 31, 2020, due to certain COVID-19 related care provided to a son or daughter. This credit is based on net earnings from self-employment and is limited to $200 per day for a maximum of 50 care days.

The end date for these tax credits has now been extended to March 31, 2021.

For details regarding these tax credits, see IRS Form 7202 and the instructions for Form 7202 below.

Winthrop Partners is a fee-only fiduciary that provides wealth planning and investment management services. Please contact us at www.winthroppartners.com or 267-454-7551. Our team can help you make successful retirement, financial planning, and investment decisions.

The information provided herein is for educational purposes only and should not be considered investment, tax, accounting, or legal advice. Winthrop Partners does not provide tax advice or legal advice. The information contained herein may also be subject to change. Winthrop Partners has made every attempt to ensure the accuracy and reliability of the information provided, but it cannot be guaranteed. Before taking any action, you should first consult with a tax or legal professional.