Eligible freelancers can apply for a tax credit of up to $ 5,110 if they were unable to work because they were ill with Covid-19 or for quarantining in accordance with authorities’ restrictions, the Internal Revenue Service (IRS) said.
Also They can claim a tax credit of up to $ 2,000 if they were unable to provide for a family member sick with coronavirus and another tax credit of up to $ 10,000 if your job was affected by the closure of your child’s daycare or schoolthe federal agency added.
“Eligible self-employed workers will determine their equivalent family and sick leave discounts using the new IRS Form 7202: Family and Sick Leave Credits for Certain Self-employed Persons,” he explained.
Once they use that form to determine the amount of the tax credit, they must use the 2020 Form 1040 to apply for it with the IRS. It is important to be clear that you must use these two forms.
The purpose of this credit – allowed under the Families First Coronavirus Response Act (FFCRA) – is that eligible freelancers Enjoy a deduction from your federal tax payment. “Credits are equal to your qualified sick leave or the equivalent of your family leave, depending on the circumstances,” the IRS said.
For this year’s tax return (corresponding to 2020 income), that permit must have taken place between April 1 and December 31, 2020.
Below we break down the requirements of these two special credits for the pandemic:
In this gallery, we collect other IRS recommendations for this tax season:
