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What Is The FFCRA Tax Credit —Families First Coronavirus Response Act?

Summary: The Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act were passed to support individuals and businesses during the COVID-19 pandemic.

The FFCRA, passed in March 2020, provided paid sick leave and unemployment benefits to employees of companies with W-2 employees. The CARES Act, passed in December 2020, expanded the FFCRA to include self-employed individuals, freelancers, independent contractors, and gig workers. These acts provide tax credits to self-employed individuals to reimburse them for lost income due to the pandemic. These acts were designed to ensure that people affected by the pandemic are not left behind.

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Unlike the Paycheck Protection Program (PPP), the FFCRA is not a loan but a retroactive tax credit of your 2020 or 2021 income taxes and will either reduce the current amount you owe the IRS or be sent directly to you in the form of a check or ACH deposit, depending on your tax status. Any FFCRA credits sent directly to you can be spent however you need and never need to be paid back.

Who qualifies for the FFCRA Tax Credit?

To qualify for the FFCRA, you must meet three factors:

Identify as a Self-employed individual. A few examples, but not limited to, include:

Independent contractors (1099 workers)

Rideshare, food, or product delivery drivers

e-commerce store owners, Social media influencers

Sole proprietors

Have filed a federal tax return for the relevant period where losses took place (2020,2021).

Have had a self-employed business during the qualifying period: This includes freelancers, Independent contractors (1099 workers), gig economy workers.

Valid reasons for the leave

These credits are meant to compensate for the sick leave and family leave wages that you, as a self-employed individual, would have earned if not for certain COVID-19 related circumstances. Some examples include:

Told to follow a quarantine or isolation order at any level (federal, state, or local),

Suggested by a healthcare provider to self-quarantine,

Showing symptoms of Coronavirus and needed a medical diagnosis,

Looking after a child because their school or daycare closed

Recovering from an illness linked to the COVID-19 vaccine, or

Waiting for the results of a COVID-19 test,

Taking care of someone under a government-mandated or self-quarantine,

Getting a COVID-19 vaccination,

Why You Might Not Have Heard About It

The FFCRA and its benefits might have flown under the radar for many self-employed individuals due to initial legislative oversights and lack of media coverage. However, amendments to the CARES Act have expanded coverage to include gig workers, freelancers, independent contractors, and other self-employed persons.

Common Misconceptions

Here are some common misconceptions we hear:

Eligibility: Not just for traditional employees; self-employed individuals are also eligible.

Audit Risk: Proper documentation and accurate claim filing won’t increase audit risk.

Credit Limit: Credits are capped based on average daily self-employment income, not unlimited.

Already filed my return: Many of our clients have already filed their returns for 2020/2021, this actually makes the process easier.

How do I apply for the FFCRA credit?

It's Easy

STEP 1

Welcome to Claim My Credit! (You’re already here, so you're on the right track!)

STEP 2

Confirm your eligibility. Use our pre-qualification survey to see if you qualify and to calculate your estimated tax credit.

STEP 3

Get your previous tax statements together and start the application.

We’ll need a few details from you about the dates you’re applying for and the income earned in 2020 and 2021.

STEP 4

Sign a few docs, upload your ID info, and select your payment options.

STEP 5

Payment. Our CPA firm charges a 20% processing fee (based on your total refund). You wont have to pay anything until the money hits your account.

STEP 6

We'll submit your application directly to the IRS.

Our streamlined process does the heavy lifting for you so just sit back and relax!

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What Is The FFCRA Tax Credit —Families First Coronavirus Response Act?

What Is The FFCRA Tax Credit —Families First Coronavirus Response Act?

What Is The FFCRA Tax Credit —Families First Coronavirus Response Act?

What Is The FFCRA Tax Credit —Families First Coronavirus Response Act?

It's Easy

It's Easy

It's Easy

It's Easy

The Complete Guide to the Self-Employed Tax Credit (SETC)

The Complete Guide to the Self-Employed Tax Credit (SETC)

The Complete Guide to the Self-Employed Tax Credit (SETC)

The Complete Guide to the Self-Employed Tax Credit (SETC)

Individuals can still claim their Self-Employed Tax Credit (SETC), worth up to $32,220, under the FFCRA. Here is everything you need to know.

Individuals can still claim their Self-Employed Tax Credit (SETC), worth up to $32,220, under the FFCRA. Here is everything you need to know.

Individuals can still claim their Self-Employed Tax Credit (SETC), worth up to $32,220, under the FFCRA. Here is everything you need to know.

Individuals can still claim their Self-Employed Tax Credit (SETC), worth up to $32,220, under the FFCRA. Here is everything you need to know.

Your questions answered.

Your questions answered.

Your questions answered.

What if I already filed my taxes for 2020 & 2021?

What is the Sick & Family Leave Tax Credit?

Are there any deadlines for claiming SETC?

Do I have to repay the funds I recieve?

What documentation do I need to provide?

How long will it take to receive my SETC refund?

What is the difference between the SETC and FFCRA tax credits?

What does it mean to be self-employed?

What does this cost?

What is a Schedule SE tax form?

What is an IRS Form 1040-X?

What is an IRS Form 7202?

Can I receive support if I need it?

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