Let’s Check to See If You Qualify
If qualified, you are eligible for up to $32,220 in relief funds!
Explore potential tax benefits for self-employed individuals who may have missed out on valuable credits in the tax years 2020 and 2021. SETC Tax Credits are potentially a missed opportunity regarding income tax credits meant for employers, which also apply to self-employed individuals. These credits cover compensation for missed workdays due to COVID-19-related issues.
If you took time off in 2020 or 2021 due to sickness or family responsibilities, amending your income tax returns for those years could be a smart move. The appeal lies in these credits’ substantial and refundable nature—up to $5,110 for qualified sick leave wages and up to $10,000 or $12,000 for qualified family leave wages (or equivalent net self-employment earnings). The general statute of limitation for amending timely filed and paid 2020 returns expires on May 17, 2024. SETC Pros can provide proactive discussions with self-employed clients. Don’t miss the chance to optimize your tax situation—explore eligible days for filing for SETC Tax Refund now.
The SETC Tax Refund, or Self-Employed Tax Credit, is a program aimed at aiding self-employed individuals facing financial challenges due to the COVID-19 pandemic. Originally part of the Families First Coronavirus Response Act, it was expanded by the CARES Act to include freelancers, independent contractors, and gig workers. The 2020 tax credit period, initially ending on December 31, 2020, was extended to March 31, 2021, by the Consolidated Appropriations Act. Subsequently, the American Rescue Plan Act introduced the 2021 tax period, running from April 1, 2021, to September 30, 2021.
The SETC encompasses federal legislation providing paid sick leave, COVID-19 testing, food assistance, and unemployment benefits. Employers gain health insurance protection for their employees, while self-employed individuals can claim tax credits on their income tax returns for COVID-19-related sick leave.
To qualify for the SETC Tax Refund, you must be a self-employed individual regularly conducting a trade or business as per section 1402 of the Code. This makes you eligible for tax credits against federal income taxes, aligning with EPSLA and Expanded FMLA requirements.
Note: Sub S or True S Corps / C Corps are ineligible. Ensure documentation similar to employers to substantiate eligibility. As of January 31, 2022, Form 7200 cannot be used for tax credit advances by self-employed individuals.
Accessing SETC tax credits involves a systematic process to secure up to $15,110 for sick and family leave credits. Follow these steps:
Individuals aiming to claim these credits must submit Form 7202 along with their 2020 or 2021 tax return. If tax returns have already been filed, an amendment is necessary to ensure eligibility for the refundable credit.
Specialized tax professionals, like SETC Pros, can provide valuable assistance. They ensure precise calculations and guide individuals through the intricacies of the process, maximizing the benefits available under SETC.
Deadlines and Limitations:
The window to amend the 2020 tax return for refundable credits related to sick or family leave occurring between April 1, 2020, and Dec. 31, 2020, closes on May17, 2024, for returns filed by the original due date. Different deadlines may apply to returns with extended due dates or those filed within the postponement period granted by Notice 2021-21, extending to May 17, 2021, with additional relief provided by Notice 2023-21.
For sick and family leave occurring between Jan. 1, 2021, and Sept. 30, 2021, an amendment to claim the credit remains eligible for filing until May 17, 2025.
If qualified, you are eligible for up to $32,220 in relief funds!
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