• Claiming Your Self-Employed Tax Credit (SETC)

  • Before You Begin - Please Read It Completely

     

    Self- Employed Tax Credit (SETC)

     

    Coronavirus Paid Leave Tax Credits for Self-Employed Workers

     

    You may be eligible for up to $32,220 in tax credits from 2020 & 2021

     

    The SETC is a 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 be a valuable resource for eligible individuals to help bridge financial gaps caused by unforeseen disruptions.

     

    Whether you're a self-employed business owner, a 1099 subcontractor, or a family-centric small business, the Self-Employed Tax Credit holds the potential to bridge the gap left by more traditional forms of support.

     

    Almost everybody with Schedule C income qualifies to some extent.

     

    In response to the coronavirus (COVID-19) crisis, an eligible self-employed individual was allowed to claim an income tax credit for any tax year for:

    a qualified sick leave equivalent amount, under Section 7002 of the Families First Coronavirus Response Act (P.L. 116-127); and/or
    100 percent of a qualified family leave equivalent amount, under Section 7004 of P.L. 116-127.
    COVID-19: Credits for Sick and Family Leave for April 1st, 2020-March 31st, 2021

     

    The American Rescue Plan Act Extended the dates from April 1st, 2020 to September 30th, 2021

    In response to the coronavirus (COVID-19) crisis, an eligible self-employed individual was allowed to claim an income tax credit for any tax year for:

    · a qualified sick leave equivalent amount, under Section 9642 of the American Rescue Plan Act of 2021 (P.L. 117-2); and/or

    · 100 percent of a qualified family leave equivalent amount, under Section 9643 of P.L. 117-2.

     

    Key Eligibility Criteria

     

    Self-Employed Status:

    If you were self-employed in 2020 and/or 2021, you could potentially qualify for the SETC. This includes sole proprietors who run businesses with employees, 1099 subcontractors, and single-member LLCs. If you filed a “Schedule C” or a Partnership (1065) on your federal tax returns for 2020 and/or 2021, you're on the right track.

     

    COVID Impacts:

    Whether you battled COVID, experienced COVID-like symptoms, needed to quarantine, underwent testing or cared for a family member affected by the virus, the SETC 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, we're here to help.

     

    Extremely Important.  If Self-Employed and Employed through a W-2 in the same year

    If you were both employed and self-employed in the years 2020 and/or 2021 and your employer paid you under the Families First Coronavirus Response Act for qualified sick and/or family leave wages, these wages MUST be disclosed by your employer on the Form W-2, box 14 or an equivalent supporting statement.  The employer is required to disclose the amounts of qualified sick and/or family leave wages paid by category.  These payments MUST be disclosed on this survey by category and year, which will reduce the allowable credit under the Self-Employed Tax Credit.  Both the employer FFCRA and SETC program were credited under the Families First Coronaviris Response Act and therefore, you may not doubledip under both programs.  The survey will request the amount paid by the employer broken down by category and by year.

     

    Important Note:

    Sub S or True S Corps / C Corps are not eligible for the SETC. This unique tax credit is exclusively available to business owners who filed a “Schedule C” or a Partnership (1065) on their federal tax returns for 2020 and/or 2021

    When you’re ready to apply, you’ll need a few tax documents, the date(s) that qualify you, and a copy of your 2019, 2020 and 2021 tax returns.

     

     

  • Important Notice:


    The address you provide above will be used as the mailing address for your SETC refund check. If you meet the eligibility criteria, the IRS generally takes 3 – 5 months to process your application. To ensure the check reaches you without any complications, kindly provide an address where you intend to reside for the next 6 months. This will help guarantee accurate and timely delivery to the correct address.

  • For many business owners their 2019 self-employed income was higher than their 2020 self-employed income.  Since one of the limiting factors for the Self-Employed Tax Credit (SETC) is the level of the self-employed income, electing to choosing the 2019 self-employed income on Form SE from the 2019 return, if it is higher, would produce a better outcome.

  • Because you indicated that your were not self-employed for the periods 04/1/2020 through 03/31/2021, you would NOT QUALIFY for the Self-Employed Tax Credit (SETC) for 2020.

     

    Please click NEXT to determine if your qualify for the year 2021

  • Almost every American was negatively impacted by COVID-19 between the dates of 4/1/20 and 3/31/21.

  • As per IRS guidelines, you are NOT required to provide proof of a positive COVID-19 test or your COVID-19 status when submitting your filing. Instead, you are confirming IN GOOD FAITH that you experienced COVID-19, its symptoms, related illness, or quarantine, resulting in the inability to work and earn income. While no specific evidence is needed for filing, it's advisable to retain certain records for your records. These might include a positive COVID-19 test result, a healthcare provider's note about your positive test or symptoms, or documentation indicating quarantine. Also, remember that maintaining records of non-working days due to COVID-19 exposure or symptoms could be beneficial, such as data from your business software or bank statements reflecting the absence of sales deposits during that period. You can trust our simplified process to account for your circumstances accurately and fairly.

  • What dates did you sacrifice working in your business because you had COVID 19, had COVID 19 symptoms, a COVID 19 related illness or were told to quarantine because you were exposed or affected by COVID 19?

  • Max credit available for this selection: Net Earnings reported on Client’s Schedule C divided by 260. The maximum claim amount allowed is capped at $511 per day X 10 days = $5,110

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    Pick a Date
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    Pick a Date

  • The Max days able to be claimed under this sections is: 10

  • What dates did you sacrifice working in your business because you cared for someone else (ex: son, daughter, spouse, elder, other person) whom had COVID 19, had COVID 19 symptoms, a COVID 19 related illness or were told to quarantine because they were exposed or affected by COVID 19

  • Max credit available for this selection: Net Earnings reported on Client’s Schedule C divided by 260 X 67%. The maximum claim amount allowed is capped at $200 per day X 10 days = $2,000

     

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    Pick a Date
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    Pick a Date

  • The Max days able to be claimed under this sections is: 10

  • What dates did you sacrifice working in your business because your minor (under the age of 18 or a child with severe disabilities) child’s school or daycare closed, your child out was sick, or your child was told to quarantine due to COVID 19?

     

    Note:  You should only list dates here if you listed a dependent on your tax return for the year 2020.

     

    Max credit available for this selection: Net Earnings reported on Client’s Schedule C divided by 260 X 67%. The maximum claim amount allowed is capped at $200 per day X 50 days = $10,000.  Please note the maxium number of day for this category is 50 for 2020.

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    Pick a Date
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    Pick a Date

  • The Max days able to be claimed under this sections is: 50

  • Dates in this section should only be listed if you had minor dependent(s) (under the age of 18 or a child with severe disabilities) listed on your tax return for the year 2020.

  • 2019 Self-Employed Earnings

  • To find your 2019 self-employed income for taxes, check the 2019 Form 1040 Schedule SE, specifically 'Item 6 - Net Earnings From Self-Employment.' This is your total income before deductions, combining earnings from all your self-employed income.

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  • 2020 Self-Employed Earnings

  • To find your 2020 self-employed income for taxes, check your 2020 Form 1040 Schedule SE, specifically 'Item 6 - Net Earnings From Self-Employment.' This is your total income before deductions, combining earnings from all your self-employed income.

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  • Because you indicated that your were not self-employed for the periods 04/1/2021 through 09/30/2021, you would NOT QUALIFY for the Self-Employed Tax Credit (SETC) for 2021.

     

    Please click NEXT to determine if your qualify for any other year

  • Almost every American was negatively impacted by COVID-19 between the dates of 4/1/20 and 09/30/2021.

  • As per IRS guidelines, you are NOT required to provide proof of a positive COVID-19 test or your COVID-19 status when submitting your filing. Instead, you are confirming IN GOOD FAITH that you experienced COVID-19, its symptoms, related illness, or quarantine, resulting in the inability to work and earn income. While no specific evidence is needed for filing, it's advisable to retain certain records for your records. These might include a positive COVID-19 test result, a healthcare provider's note about your positive test or symptoms, or documentation indicating quarantine. Also, remember that maintaining records of non-working days due to COVID-19 exposure or symptoms could be beneficial, such as data from your business software or bank statements reflecting the absence of sales deposits during that period. You can trust our simplified process to account for your circumstances accurately and fairly.

  • What dates did you sacrifice working in your business because you had COVID 19, had COVID 19 symptoms, a COVID 19 related illness or were told to quarantine because you were exposed or affected by COVID 19?

  • Max credit available for this selection: Net Earnings reported on Client’s Schedule C divided by 260. The maximum claim amount allowed is capped at $511 per day X 10 days = $5,110

  •  - -
    Pick a Date
  •  - -
    Pick a Date

  • The Max days able to be claimed under this sections is: 10

  • What dates did you sacrifice working in your business because you cared for someone else (ex: son, daughter, spouse, elder, other person) whom had COVID 19, had COVID 19 symptoms, a COVID 19 related illness or were told to quarantine because they were exposed or affected by COVID 19?

  • Max credit available for this selection: Net Earnings reported on Client’s Schedule C divided by 260 X 67%. The maximum claim amount allowed is capped at $200 per day X 10 days = $2,000

  •  - -
    Pick a Date
  •  - -
    Pick a Date

  • The Max days able to be claimed under this sections is: 10

  • What dates did you sacrifice working in your business because your minor (under the age of 18 or a child with severe disabilities) child’s school or daycare closed, your child out was sick, or your child was told to quarantine due to COVID 19?

     

    Note:  You should only list dates here if you listed a dependent on your tax return for the year 2021.

     

    Max credit available for this selection: Net Earnings reported on Client’s Schedule C divided by 260 X 67%. The maximum claim amount allowed is capped at $200 per day X 60 days = $12,000. Please note the maxium number of day for this category is 60 for 2021.

  •  - -
    Pick a Date
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    Pick a Date

  • The Max days able to be claimed under this sections is: 60

  • Dates in this section should only be listed if you had minor dependents (under the age of 18 or a child with severe disabilities) listed on your tax return for the year 2021.

  • 2020 Self-Employed Earnings

  • To find your 2020 self-employed income for taxes, check your 2020 Form 1040 Schedule SE, specifically 'Item 6 - Net Earnings From Self-Employment.' This is your total income before deductions, combining earnings from all your self-employed income.

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  • 2021 Self-Employed Earnings

  • To find your self-employed income for taxes, check Form 1040 Schedule SE, specifically 'Item 6 - Net Earnings From Self-Employment.' This is your total income before deductions, combining earnings from all your self-employed income.

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  • Direct Deposit Information

    Please let us know where you want the IRS to deposit your refund

  • Survey Completed 

    Thank you  for uploading completing the first step of the SETC process. You have provide the information that we need to calculate your refund. 

     

    Next Steps...

    We have emailed you an IRS Form 8821 to e-sign. This form will gives us permission to monitor the acceptance of your amended return by the IRS. Please check your email and sign that form. 


    Our Self-Employment Tax Credit specialist will review the information that you provided  and calculate the tax credit that you can expect. The result will be sent to you by email. You can expect an email from us within the next three business days. 

     

    If you Qualify for a Tax Credit …
    We will take care of filing your amended tax return for you. All you will have to do is upload some documents that we will need. The email that we send you will have all of the details. 
     

    Refer 3 and It’s Free
    We would like to make this offer to you - refer three paying customers to our service, and we'll create your amendment for FREE!* 


    *Terms apply. Referrals must become paying customers. Free offer only applies to cost of preparing the amendment only.

     

    Documents You’ll Need
    Please start gathering these documents as we will need them to complete the amendment for your tax refund:


    1) Copy of a Current State ID or Driver's License
    2) Copy of your 2020 Form 1040 (Tax Return), including ALL schedules
    3) Copy of your 2021 Form 1040 (Tax Return), including ALL schedules
    4) Copy of All your 2020 Form W-2(s), including ANY FFCRA supplemental attachment(s)
    5) Copy of All your 2021 Form W-2(s), including ANY FFCRA supplemental attachment(s)
    6) Copy of All your 2020 Form 1099-R(s)
    7) Copy of All your 2021 Form 1099-R(s)
    8) Copy of All your 2020 K-1s
    9) Copy of All your 2020 K-1s

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