top of page
  • Writer's pictureAustinTaxCPAs

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:

  1. You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.

  2. 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)

  3. You were experiencing symptoms of COVID-19 and seeking a medical diagnosis.

✅ You also qualify for a tax credit if:

  1. You were caring for an individual who was #1 & #2 above.

  2. 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:

Recent Posts

See All
bottom of page