• 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

     

    Filed The Original Returns:

    • You FILED TAXES in 2020, 2021

    Note: If you have not filed the years 2020 and 2021 returns, you may still be eligible, however, it would require an original filing and not an amendment.  The fees would be based on the complexity of the returns.

     

    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.

     

    Generally, you are consider "self-employed" if any of the following apply to you;

    • You carry on a trade or business as a sole proprietor or an independent contractor.
    • You are a member of a partnership that carries on a trade or business.
    • You are otherwise in business for yourself (including a part-time business or a gig worker). 

     

    Note: Self-employed income is a limiting factor.  If your self-employed income is low for 2019, 2020 and 2021, it will severly effect the outcome.  If your self-employed income is negative for 2019, 2020 and 2021, you would not qualify for this program.

     

    COVID Impacts:

    Whether subject to Federal, State, or local quarantine or isolation order(s) related to COVID-19, you battled COVID, experienced COVID-like symptoms, needed to quarantine, underwent testing, or cared for a caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19, 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.

     

    Qualifying Days:

    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.  Qualifying days would include;

    • You took time off in 2020 or 2021 due to COVID-19 or to care for someone with COVID-19 during the same period.
    • You took time off to care for a child under 18 years old due to school or daycare closures.

    Claimable Days

    The IRS considers specific timeframes for claiming the SE Tax Credit:

    • If you had COVID-19 and took time off between April 1, 2020, and March 31, 2021, or between April 1, 2021, and September 30, 2021, you can claim up to 10 days in each period.
    • If you cared for someone under eighteen years old between April 1, 2020, and March 31, 2021, you can claim up to 50 days. From April 1, 2021, to September 30, 2021, you can claim up to 60 days.

     

    Do I qualify for SETC tax credit if I already received unemployment benefits?


    You can still qualify for the SETC tax credit even if you received unemployment benefits. However, you CANNOT claim the days you received unemployment benefits as days you were not able to work due to COVID-19 related issues.

     

    Note: Qualifying days is a limiting factor. If your qualifying days are low for 2020 and 2021, it will severly effect the outcome. If you have no qualifying days for 2020 or 2021, you would not qualify for this program. 

     

    NOTE:  If you need to revise your survey for some reason, please request, through our portal, we send you a revised survey request.  If you use the link you used to create this survey, it will create a NEW CLIENT in our system and likely WILL NOT be connected to your other account.

     

    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.

     

     

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  • 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 were subject to Federal, State, or local quarantine or isolation order(s) related to COVID-19, you had experiencing symptoms of COVID-19 and were seeking a medical diagnosis, had a COVID-19-related illness, or were advised by a healthcare provider to self-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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  • 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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  • The Max days able to be claimed under this sections is: 10

  • What dates did you sacrifice working in your business because your son or daughter’s (under the age of 18 or a child with severe disabilities) school or daycare has been closed, or the childcare provider was unavailable due to COVID-19 precautions or experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretaries of the Treasury and Labor?

     

    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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  • 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 were subject to Federal, State, or local quarantine or isolation order(s) related to COVID-19, you had experiencing symptoms of COVID-19 and were seeking a medical diagnosis, had a COVID-19-related illness, or were advised by a healthcare provider to self-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

  •  - -
  •  - -

  • 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, subject to isolation orders due to COVID-19, or were advised by a health care provider to self-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

  •  - -
  •  - -

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

  • What dates did you sacrifice working in your business because your son or daughter’s (under the age of 18 or a child with severe disabilities) school or daycare has been closed, or the childcare provider was unavailable due to COVID-19 precautions or experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretaries of the Treasury and Labor?

     

    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.

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  • 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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  • The Self-Employed Tax Credit (SETC)

     

    Hooray!

    Based on the information provided, it looks like you could be getting back ${2020And} with the SETC program since your maximum earning potential was affected due to factors related to COVID-19.

     

    The following is how it breaks down;

     

    2020 ${04012020To}

    2021 ${04012021To}

     

    Here are your next steps:

     

    1.  You will receive an invite to our secure portal for communication purposes and for you to be able to upload the required documents for the necessary amendments to claim your returns

    2.  You will need to upload all of the required documents to our secure portal listed below
     

    3.  Sit back and relax; we'll do the rest and send you the amended return for your signature once completed.  The amendment will also be electronically filed as long as the original return(s) were electronically filed.  If the original return was not electronically filed or cannot be processed electronically, the amendment(s) will need to be filed by mail.

     

    Thank you for using Legacy Tax & Resolution Services, a National Leader in the Tax Credits industry and Tax Prep Advocates

     

    Remember, Legacy Tax & Resolution Services will help with any Tax Prep/Planning, Accounting, Payroll, Entity Structuring/Planning and Business Coaching needs.

     

    Documents that will need to be uploaded to our portal to get started;

     

    1) Copy of a Current ID or Drivers License

     


    2) Dates of birth for the taxpayer, spouse, and all dependents

     


    3) A copy of your 2019 Form 1040 (Tax Return), including ALL schedules, if the 2019 Self-Employed Income is higher than 2020.  We would prefer one PDF file.

     


    4) A copy of your 2020 Form 1040 (Tax Return), including ALL schedules.  We would prefer one PDF file.

     


    5) A copy of your 2021 Form 1040 (Tax Return), including ALL schedules.  We would prefer one PDF file.

     


    Note:  Please upload the COMPLETE returns with ALL schedules.  Please remove any passwords BEFORE uploading.  Also, IRS return transcripts do not provide the same level of detail as the original returns.

     

     


    Please understand, that failure to upload the documents is the biggest delay in the processing of your case. We need your help to keep things moving!

     

     

     

     

     

  • The Self-Employed Tax Credit (SETC)

     

    Hooray!

    Based on the information provided, it looks like you could be getting back ${2020And} with the SETC program, since your maximum earning potential was affected due to factors related to COVID-19.

     

    The following is how it breaks down;

     

    2020 ${04012020To}

    2021 ${04012021To}

     

    Since your total refund is below $1,000, it may not seem that it makes sense to move forward with the amendment(s), and we get that.  That is why we have devised a reduced fee schedule to help you.

    Upper Range               Lower Range              Reduced Filing Fees

    $999                            $900                            $455

    $899                            $800                            $395

    $799                            $700                            $345

    699                              $600                            $295

    599                              $500                            $250

    499                              $400                            $220

     

    Below $400, it probably does not make sense for either of us.

     

    We are the only firm of our type willing to work with taxpayers like you with such a small refund amount.  We are willing to do this to earn your future tax preparation business for years to come.  We also are confident that you will want to refer dozens of your colleagues now that you have experience with the process.

     

    Here are your next steps to get started:

     

    1.  You will receive an invite to our secure portal for communication purposes and for you to be able to upload the required documents for the necessary amendments to claim your returns

    2.  You will need to upload all of the required documents to our secure portal listed below
     

    3.  Sit back and relax; we'll do the rest and send you the amended return for your signature once completed.  The amendment will also be electronically filed as long as the original return(s) were electronically filed.  If the original return was not electronically filed or cannot be processed electronically, the amendment(s) will need to be filed by mail.

     

    Thank you for using Legacy Tax & Resolution Services, a National Leader in the Tax Credits industry and Tax Prep Advocates

     

    Remember, Legacy Tax & Resolution Services will help with any Tax Prep/Planning, Accounting, Payroll, Entity Structuring/Planning and Business Coaching needs.

     

    Documents that will need to be uploaded to our portal to get started;

    1.  You will receive an invite to our secure portal for communication purposes and for you to be able to upload the required documents for the necessary amendments to claim your returns

    2.  You will need to upload all of the required documents to our secure portal listed below
     

    3.  Sit back and relax; we'll do the rest and send you the amended return for your signature once completed.  The amendment will also be electronically filed as long as the original return(s) were electronically filed.  If the original return was not electronically filed or cannot be processed electronically, the amendment(s) will need to be filed by mail.

     

    Thank you for using Legacy Tax & Resolution Services, a National Leader in the Tax Credits industry and Tax Prep Advocates

     

    Remember, Legacy Tax & Resolution Services will help with any Tax Prep/Planning, Accounting, Payroll, Entity Structuring/Planning and Business Coaching needs.

     

    Documents that will need to be uploaded to our portal to get started;

     

    1) Copy of a Current ID or Drivers License

     

     

    2) Dates of birth for the taxpayer, spouse, and all dependents

     

     

    3) A copy of your 2019 Form 1040 (Tax Return), including ALL schedules, if the 2019 Self-Employed Income is higher than 2020.  We would prefer one PDF file.

     

     

    4) A copy of your 2020 Form 1040 (Tax Return), including ALL schedules.  We would prefer one PDF file.

     

     

    5) A copy of your 2021 Form 1040 (Tax Return), including ALL schedules.  We would prefer one PDF file.

     

     

    Note:  Please upload the COMPLETE returns with ALL schedules.  Please remove any passwords BEFORE uploading.  Also, IRS return transcripts do not provide the same level of detail as the original returns.

     


     

    Please understand, that failure to upload the documents is the biggest delay in the processing of your case. We need your help to keep things moving!

     

     

  • No Self-Employed Income!

     

     Self-Employed Tax Credit (SETC) Outcome

     

    Based on the information provided, it looks like you will not be able to take advantage of the SETC program, due to the biggest limiting fact- Self-Employed Income.  You must have Self-Employed Income in either 2019, 2020, or 2021 to take advantage of the Self-Employed Tax Credit (SETC).


    Since you now have had the opportunity to go through the survey and see how it works, I would highly encourage you to reach out to other self-employed individuals to get them to take the survey to see how much they can get.  Remember, you can get paid just by helping other people get their refunds.

     
    Sorry, it did not work out for you!

     


    Remember, Legacy Tax & Resolution Services will be here to help with any Tax Prep/Planning, Accounting, Payroll, and Entity Structuring/Planning and Business Coaching needs.

  • No Qualifying Days!

     

    Self-Employed Tax Credit (SETC) Outcome


     

    Based on the information provided, it looks like you will not be able to take advantage of the SETC program, due to the lack of any qualifying days. You must have qualifying days in 2020, and/or 2021 to take advantage of the Self-Employed Tax Credit (SETC)


    Since you now have had the opportunity to go through the survey and see how it works, I would highly encourage you to reach out to other self-employed individuals to get them to take the survey to see how much they can get.  Remember, you can get paid just by helping other people get their refunds

     

     
    Sorry, it did not work out for you!

     


    Remember, Legacy Tax & Resolution Services will be here to help with any Tax Prep/Planning, Accounting, Payroll, and Entity Structuring/Planning and Business Coaching needs.

     

     

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