Good news for those who are self employed (Schedule C tax filers) – The Internal Revenue Service announced today that a new form is available for eligible self-employed individuals to claim sick and family leave tax credits under the Families First Coronavirus Response Act (FFCRA).
Eligible self-employed individuals will 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’ll claim the tax credits on their 2020 Form 1040 for leave taken between April 1, 2020, and December 31, 2020.
Taxpayers must maintain appropriate documentation establishing their eligibility for the credits as an eligible self-employed individual. We are still looking into exactly what “proof” will be required but if you are self employed, please look out for this new form on your tax return!