The Sick and Family Leave Credit Deadline Approaches: What you need to know

The Sick and Family Leave Credit deadline is fast approaching.  As Tax Day on April 15th quickly approaches, it’s essential for individuals to be aware of the Sick and Family Leave Credit, a valuable opportunity to receive financial assistance for time off related to COVID-19.   This credit, implemented as part of the American Rescue Plan Act, aims to support workers who were impacted by the pandemic and needed to take time off for various reasons.

What is the Sick and Family Leave Credit (SFLC)

The Sick and Family Leave Credit was created under the Family First Coronavirus Response Act (FFCRA) and extended by the American Rescue Plan Act (ARP).  It is a financial aid program for self-employed individuals, freelancers, and independent contractors (see full list below).  This credit aims to compensate those who experienced a loss of income due to COVID-19 related reasons.

The SFLC is specialized tax credit designed to provide support to self-employed individuals during the COVID-19 pandemic.  It acknowledges the unique challenges faced by those who work for themselves, especially during times of illness, caregiving responsibilities, quarantine, and related circumstances.  This credit can be a valuable resource for eligible individuals to help bridge financial gaps caused by the unforeseen disruptions the pandemic created.

Who Qualifies for the Sick and Family Leave Credit

Self-Employed workers who filed schedule C income during the years of 2020 and 2021 and faced the challenge of being unable to work during the COVID-19 pandemic.  Whether you battled COVID, experienced COVID-like symptoms, needed to quarantine, underwent testing, or cared for a family member affected by the virus, the SFLC could be your financial relief.  If the closure of your child’s school or daycare due to COVID restrictions forced you to stay home and impacted your work, the SFLC can definitely help.

If you were self-employed in 2020 and/or 2021, you could potentially qualify for the SFLC.  This includes sole proprietors who run businesses with employees, 1099 subcontractors, and Single-member LLCs.

Sole Proprietors

1099 Contractors

Freelancers

Single-member LLC’s

Gig Workers

Other Self-Employed Workers

Some examples:  Real Estate Agents, Insurance Agents, Hair Stylists, Independent Dentists, Doctors, Chiropractors, Landlords, Property Owners, Uber Drivers, Air BNB, Musicians, Online Sore Owners, Contractors, Construction Workers, Entrepreneurs and more!

Find out if you qualify for the Sick and Family Leave Credit and start your claim today.

How is the Sick and Family Leave Credit Calculated

The credit is calculated based on your net self-employment income, taking into account the number of days you couldn’t work due to COVID related reasons:

Personally sick:  If you were unable to work because you were sick with COVID or quarantined, the credit equals your average daily net self-employment income, up to $511 per day, for a maximum of 10 days.

Caring For a Child or Family member:  If you were caring for a family member with COVID, or a child whose school or daycare was closed due to COVID, the credit is two-thirds of your average daily net self-employment income, up to $200 per day.  For 2020, this is applicable for up to 50 days, and for 2021, up to 60 days.

Your average daily net self-employment income is calculated by dividing your annual net self-employment income by 260 (which is the average number of workdays in a year).  The total credit you can receive is the aggregate of these calculations for the days you were eligible, subject to the daily and total day limits specified by the program.

The Deadline to File Approaches – April 15th, 2025

Many individuals may not realize they are eligible for this credit and could be missing out on much-needed financial assistance.  With Tax Day approaching, it’s crucial to take advantage of this opportunity before the deadline passes.  By filing for the Sick and Family Leave Credit, you can receive the financial support you need during these challenging times.

Nearly 50 million Americans are eligible to claim the Sick and Family Leave Credit however many still have not filed.  Many Accountants and CPA’s are not aware of the SFLC and the process required to file for the Credit.

If you were impacted by the COVID-19 pandemic and feel that you qualify – I highly encourage you to check with your accountant, CPA, or tax preparer to make sure they are aware of the Sick and Family Leave Credit before the April 15th tax deadline.

The Sick and Family Leave Credit is a valuable option for every self-employed individual who lost income during the pandemic.  As the deadline approaches, I highly encourage you to act now before it’s too late!

If you have any questions, need assistance or referrals to eligible companies that handle the Sick and Family Leave Credit please reach out through our Worksmarter4yourfuture contact page.

As always, wishing you my very best for continued success and happiness in business and in life!

Rick

CEO Worksmarter4u / Silver And Gold Solutions / Worksmarter4yourfuture

There are a few companies like United Business Solutions (UBS) that offer their online service to help self-employed individuals claim their credit.  With a streamlined 8-step process, individuals can find out their eligibility in less than 10 minutes and complete their application within 30 minutes.  United Business Solutions has a direct integration with the IRS (just like H&R Block, Turbo Tax, and other online Tax firms) – no need to hunt down previous tax records.  Simply start your application by answering a few questions and you will be guided with short video tutorials throughout the process.