Is this similar to the PPP program?
The PPP (Paycheck Protection Program), under the CARES Act, aids in retaining employees on payroll, offering loans potentially forgivable for small businesses. Paid Sick & Family Leave Credits, stemming from the FFCRA, Consolidated Appropriations Act, and the American Rescue Plan, provide tax credits for individuals without requiring repayment. While PPP targets business support, Paid Sick & Family Leave Credits aim to assist individuals affected by the economic impact of missing work due to the COVID-19 pandemic.
Are there any deadlines for claiming the Paid Sick and Family Leave Credits?
Yes. The deadline to amend your 2020 and/or 2021 tax return for claiming or adjusting Paid Sick and Family Leave Credits is three years from the original due date of the return. For the Paid Sick and Family Leave Credits, the deadline for amending your 2020 tax return is April 15, 2024, and for your 2021 tax return, it is April 15, 2025. Notice: The deadline for filing for 2020 was April 15th, 2024, because of this we are currently no longer filing customers for that year.
Is the Paid Sick and Family Leave Credit a loan or a grant?
The Paid Sick and Family Leave Credit functions as a tax credit, not a loan or grant. Tailored to address needs similar to those covered by mandatory paid leave for employees, these tax credits aim to provide compensation for income lost due to COVID-19-related circumstances. Whether you were sick, caring for someone affected by COVID-19, or facing conditions hindering your ability to work, these credits aim to alleviate the financial impact on your income.
Who is eligible for the Paid Sick and Family Leave Credits?
To be eligible for Self Employed Paid Sick and Family Leave Credits, you need to fulfill specific requirements. This includes being a self-employed individual, encompassing various categories such as sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLCs. Additionally, you must have filed a Schedule SE of IRS Tax form 1040 in either 2020 and/or 2021, showing a positive net income and the payment of self-employment tax on your earnings. Furthermore, qualification entails having missed work due to issues directly related to COVID-19. Notice: The deadline for filing for 2020 was April 15th, 2024, because of this we are currently no longer filing customers for that year.
What dates are eligible for Sick and Family Leave Credits?
Covid related paid time off is available as follows: up to 60 days – 12 weeks between April 1, 2020, and March 31, 2021.Up to 70 days - 14 weeks between April 1, 2021, and September 30, 2021.Notice: The deadline for filing for 2020 was April 15th, 2024, because of this we are currently no longer filing customers for that year.
Why do I have to pay your fee before filing?
We want to emphasize that payment is not required until we have completed the analysis and the customer has had an opportunity to review the finalized credit amount. It's important to note that if the customer decides not to sign an agreement to move forward, they are not obligated to make any payment. However, in the event that they choose to proceed by signing our contract, payment will be required at that time for tax preparation and our incurred costs to complete the documents.
If the IRS does not award me anything will you refund your fee?
We are charging for the tax preparation, not for the credit. Based on the taxpayer’s circumstances, the IRS could apply credit to existing tax liability, but credit was still given. Our fee is payable due to completion of the work as stated in the contract.
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