What is the FFCRA Tax Credit?
The Families First Coronavirus Response Act (FFCRA) Tax Credit was passed in 2020 and was one of the earliest pieces of legislation designed to help small business owners afford the sick leave their employees had to take because of COVID 19.
The FFCRA originally focused only on employees of certain small businesses but had been expanded in 2021 to cover US citizens who were self-employed during the COVID-19 pandemic and suffered losses in business due to lockdowns or illnesses for themselves or family members.
The total FFCRA Tax credit can be up to $32,000 and is based on your net earnings in 2020 and in 2021. You will have to calculate your daily average of self-employment income. This is your net earnings for the taxable year divided by 260 (the standard recognized amount of working days in a year). This allows the IRS to estimate how much you lost in wages for every day you were not able to work.
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Who Qualifies?
- Sole proprietors managing
- Businesses with employees
- 1099 subcontractors
- Single-member LLCs
- Individuals who submitted. “Schedule C” or a Partnership (1065) on their Federal tax return for either 2020 or 2021
What dates are eligible for FFCRA Income?
The dates you can claim under FFCRA income tax credit are between:
April 1, 2020 – March 31, 2021 and up to 10 days for dates between: April 1, 2021 – Sept 30, 2021
Childcare related time off
• Up to 110 days
• 50 days between April 1, 2020 & March 31 , 2021
• 60 days between April 1, 2021 & Sept 30, 2021
Yourself or loved one (other than child)
• Up to 20 days
• 10 days between April 1,2020 & March 31 , 2021
• 10 days between April 1, 2021 & Sept 30, 2021