Frequently Asked Questions
Do people have to be self-employed to file for the Sick and Family Leave Credit?
This specific tax credit refund is tailored for self-employed individuals, making it particularly suitable for small business owners, freelancers, and independent contractors filing as 1099 workers. It aims to provide support to those who manage their own business. Gig workers are also eligible for the tax credit.
Is the Sick and Family Leave Credit amount taxable?
Unlike the Paycheck Protection Program (PPP) and the Employee Retention Tax Credit (ERTC), the Sick and Family Leave Credit is not taxable income. This means claiming the credit won’t increase your tax liability as the PPP and ERTC might have. It offers a financial benefit without additional tax implications.
Will claiming Sick and Family Leave Credit through FIFO affect how I file my 2024 income taxes?
No, claiming the Sick and Family Leave Credit will not impact your 2024 income tax filings. Our team of tax professionals will handle the process retroactively by amending your 2021 tax return to access these credits. This adjustment is separate from your 2024 taxes, ensuring that they remain unaffected.
What amount in tax credits can I anticipate receiving?
This depends on quite a few variables. Find out by completing our application at ci.fifo.com.
How much will FIFO charge for this service?
The total client fee is 20% of your base Sick and Family Leave Credit amount, with a discount if you pay up front. Other options may also be available, and any fees for those options will be spelled out clearly. Your application will receive a thorough review by an expert in this specific credit as well as a licensed tax professional who will sign your amended return, giving you peace of mind that you have maximized your credit amount, that your submission is correct, and that the IRS will pay the amount you are entitled to.
Will there be extensive paperwork involved in filing for the Sick and Family Leave Credit through FIFO?
No, we have simplified the process dramatically. You will need to verify your identity with ID.me (the official partner of the IRS and the only provider of IRS login access), complete our sick date self-assessment, and give us permission to complete the rest on your behalf. All other required steps are designed to minimize your effort, ensuring a seamless and hassle-free process for you.
How secure is my personal information with FIFO?
We prioritize the security of your personal information. Our data security protocols comply with industry standards, and we use encrypted systems to protect your data throughout the application process.
What support do you offer if I have questions during the process?
Our customer service team is available to assist you at every step. You can contact us via phone, email, or through our online support portal for any questions or concerns.
What are the common mistakes to avoid when applying for the Sick and Family Leave Credit?
Common mistakes include not providing accurate information and not correctly identifying eligible days in the sick date self-assessment. Our team will review your submission to help you avoid these errors.
Can I apply for the Sick and Family Leave Credit if I already received PPP or ERTC?
Yes, you can still apply for the Sick and Family Leave Credit even if you have received funds from the Paycheck Protection Program (PPP) or the Employee Retention Tax Credit (ERTC). However, you cannot claim this credit for the same periods you received PPP or ERTC benefits.
FFCRA Requirements and Eligibility
The Families First Coronavirus Response Act (FFCRA) allows self-employed business owners and independent contractors to receive a government tax credit, commonly known as the Sick and Family Leave Credit, tailored to support self-employed individuals who previously were not able to utilize COVID-19-related tax benefits. Eligible self-employed business owners, contractors, gig workers, and anyone with positive Schedule C income in 2020 or 2021 can receive government tax credits as compensation for losses incurred due to COVID-19-related illness, quarantine, or caregiving responsibilities.
Qualification Requirements
To be eligible for the Sick and Family Leave Credit, an individual must:
- Be self-employed (sole proprietor, independent contractor, or member of a partnership).
- Have a positive net income from self-employment on IRS Form 1040 Schedule SE for 2019, 2020, or 2021.
- Have been impacted by COVID-19 (either through illness or loss of income).
- Be able to verify their identity through ID.me.
Eligible Reasons for Claiming the Sick and Family Leave Credit
Clients can claim the Sick and Family Leave Credit if they were:
- Subject to a federal, state, or local quarantine or isolation order related to COVID-19.
- Advised by a healthcare provider to self-quarantine due to COVID-19 concerns.
- Experiencing COVID-19 symptoms and seeking a medical diagnosis.
- Seeking or awaiting results of a COVID-19 diagnostic test or medical diagnosis.
- Exposed to COVID-19 or unable to work pending test results or diagnosis.
- Obtaining immunization related to COVID-19.
- Recovering from any injury, disability, illness, or condition related to COVID-19 immunization.
- Caring for an individual subject to COVID-19 quarantine or isolation order.
- Caring for a son or daughter due to school closure or unavailability of childcare provider due to COVID-19.