Qualified sick & family leave credits

Self-employed & stuck with kids in 2020 due to lack of child-care? Were you unable to conduct business because you were subject to quarantines, including self-quarantines as advised by a healthcare provider? Or were you unable to work/telework to care for family members for reasons related to the coronavirus? Then you may be able to refundable credits under the Families First Coronavirus Response Act – the key word is “self-employed.”

These credits may also be available to certain partners and others who received qualified sick or family leave wages. With regards to the Family Leave credit, according to the DOL, child-care provider include individuals paid to provide child care, like nannies, au pairs, and babysitters. It also includes individuals who provide child care at no cost and without a license on a regular basis, such as, grandparents, aunts, uncles, or neighbors. Day care facilities, preschools, before and after school care programs, schools, homes, summer camps, summer enrichment programs, and respite care programs also count.

Earned Income Tax Credit 2020

Have you experienced a job loss or lower income in 2020? Collected unemployment and wondering if you would qualify for the Earned income tax credit? Thanks to a temporary rule provided in the The Coronavirus Response & Relief Supplemental Appropriations Act of 2021, you may be able to increase your EITC and the Additional Child Tax credit based on your 2019 tax filing.

The special temporary rule would allow lower-income individuals to use their earned income from tax year 2019 to determine the Earned Income Tax Credit and the refundable portion of the Child Tax Credit (i.e., the Additional Child Tax Credit) in the 2020 tax year.

This will help workers who experienced lower earned income in 2020, due to the pandemic, to get a larger refund based on the look-back to a prior filing season.

To learn more about the COVID-19 Relief package, click here