Self-Employed Sick and Family Leave Credits
Paid sick and family leave is available to self-employed individuals. You receive sick pay from the government in the form of a reduced tax bill.
⚠ If you qualify, we need the number of days in which you unable to work due to the reasons listed below:
✅ You qualify for a tax credit if:
You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.
You were advised by a health care provider to self-quarantine due to concerns related to COVID-19 (this would have likely happened if you tested positive for COVID-19)
You were experiencing symptoms of COVID-19 and seeking a medical diagnosis.
✅ You also qualify for a tax credit if:
You were caring for an individual who was #1 & #2 above.
You were caring for a son or daughter because the school or place of care for that child was closed or the childcare provider was unavailable due to COVID-19 precautions.
Some notes:
If you can work remotely while quarantining, you would not qualify for the credit. ❌❌❌
If you can work remotely but are unable to because you are sick or because you need to watch your child, you do qualify (FAQ #19) ✅✅✅
You can claim partial family leave days if you cannot work a full day due to child care (FAQ #20) ✅✅✅
If your worksite or place of business was closed due to government order, that does not qualify for sick or family leave (FAQ #27) ❌❌❌
How much is the credit?
The credit is based on:
your annual income
how many qualifying days you have
whether they are sick days or family leave days
Sick Leave Pay - example
$50,000 of annual income
5 days of sick pay
Credit = $50,000 / 280 x 5 days = $892
Family Leave Pay - example
Family leave is reduced by another 1/3:
$50,000 of annual income
5 days of family leave to watch children
Credit = $50,000 / 280 x 5 days x 2/3 = $595
Sick and Family Leave Pay Rules:
🔗 https://www.dol.gov/agencies/whd/pandemic/ffcra-questions