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Understanding The FFCRA Tax Credit — What Does It Mean for You?
The Families First Coronavirus Response Act (FFCRA), expanded under the December 2020 (CARES) Act, now includes self-employed professionals, freelancers, independent contractors, and gig workers. This expansion means you're eligible for "immediate refund" tax credits, compensating for your lost earnings during the COVID pandemic.
Filing Process with Us
Dealing with IRS filings can often be a complex, daunting, and time-intensive task, raising concerns such as:
- Is my paperwork complete and correct?
- Are my calculations accurate?
- Will I know when I'm approved?
C & C Consulting is your solution. We manage the entire process, from amending your tax returns to submitting your application to the IRS. This allows you to concentrate on what's truly important - growing your business.
You're eligible if you missed work due to:
Illness
Experiencing COVID-19 symptoms or seeking diagnosis
Handling vaccination side effects
Caring for individuals with COVID-19 symptoms
Quarantine
You were caring for an individual who had been advised by a health care provider to self-quarantine due to concerns related to COVID-19
Federal, state, or local lockdown orders related to COVID-19
Quarantining or isolation order related to COVID-19
Childcare
Providing care for your child during school closures or virtual learning
Childcare unavailability due to COVID-19
Vaccination
Attending COVID-19 vaccination appointments
Experiencing vaccination-related side effects
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ZERO RISK GUARANTEE
We provide you with exceptional service and get you the tax credit you deserve. If, for any reason we aren’t able to secure your refund, you pay nothing.
We assume all the risk.
FREQUENTLY ASKED QUESTIONS
Do I have to be self-employed to file for the SETC?
Yes. This tax credit is for self-employed individuals, small business owners, freelancers, and 1099 contractors only.
Is the SETC Application simple?
YES!! Simply fill out the form on our website to set up your personal eligibility call. Once you are pre-qualified, we will provide you with your own Client Portal to upload your documents. Once uploaded, your information will be forwarded to our Certified Public Accountants who specialise in processing your Self Employed Tax Credit refund.
From start to finish, the process should take anywhere from 16 - 20 weeks, assuming you provide your documents in a timely matter.
What if I also have a W-2 along with being self-employed?
If you have both W-2 income from an employer and income from self-employment, you are still eligible to apply for the Self-Employment Tax Credit (SETC). To accurately calculate your corrected SETC refund, we simply require a copy of your W-2 form in addition to the details of your self-employment income. This ensures that your tax refund is calculated correctly.
What if I already filed my taxes for 2020 & 2021?
We will need to file an amendment on your tax return. We do this all the time. All we require from you is a copy of your 2019, 2020 and 2021 tax returns and a copy of your drivers license and we’ll handle the rest.
What is the SETC?
The Self-Employed Tax Credit is a tax refund for eligible self-employed individuals or independent contractors.
Under the FFCRA, eligible self-employed individuals or independent contractors could claim a refundable tax credit against their income tax liability for up to 100% of the qualified sick and family leave equivalent amounts, subject to certain limitations, if they were unable to work or telework due to COVID-19-related reasons.
The qualified sick leave equivalent amount was the lesser of either $511 per day or 100% of the average daily self-employment income for each day an individual was unable to work or telework because they were subject to a quarantine or isolation order, had COVID-19 symptoms and were seeking a medical diagnosis, or were caring for someone who was subject to a quarantine or isolation order or who had COVID-19 symptoms.
The qualified family leave equivalent amount was the lesser of either $200 per day or 67% of the average daily self-employment income for each day an individual was unable to work or telework because they needed to care for a child whose school or place of care was closed due to COVID-19.
To claim this tax credit, eligible self-employed individuals or independent contractors would report the qualified sick and family leave equivalent amounts on their 2019, 2020 or 2021 tax return, depending on when the leave was taken.
What documentation do I need to provide?
For the most part, all we require is your 2019, 2020 and 2021 tax return including your schedule C and a copy of your drivers license for identification.
How much of a tax credit can I expect to receive?
There are a few factors that go into calculating your tax credit refund amount.
The biggest factors would be:
- Your net income from your schedule C on your 2019, 2020 and 2021 tax returns
- How many days you were out sick or told to quarantine with Covid-19?
- How long you might have cared for a loved one affected by Covid-19?
- How long any schools or daycare centers were closed? (and you were forced to care for a minor child during the closings)
- But the fastest and easiest way to find out how much you qualify for is to Schedule an eligibility call.