Self-employed tax credits for sick and family leave during Covid?
June 10, 2024 10:36 AM   Subscribe

A freelancer friend just told me about a relatively unknown Covid-era tax credit that may be still available to folks like us. I'm wondering if this it worth pursuing.

It's the equivalent of paid sick/family leave for self-employed people: if you lost work time either caring for someone who was sick or--in our case--kids who were home from school due to the pandemic between 1/1/21 and 9/30/21, you could be due a refund through Form 7202. (The deadline for the previous year expired in April.) This could represent a significant chunk of $ to both of us.

My tax preparer is looking into it, but in the meantime I'm wondering if anyone out there has had any luck with this?
posted by gottabefunky to Work & Money (5 answers total) 2 users marked this as a favorite
If no one come by with personal experience, there are a few reddit threads about it within the last 6 months.
posted by Iris Gambol at 11:31 AM on June 10

I used this credit in 2020, thought it was only a small amount as I was working only part time prior to and through the pandemic. I'm not sure enough time has passed to say I won't get audited for it.

IMO it seems this may be the latest trendy "tax loophole" that really isn't. It's not just a credit for child care - we were all caring for our children during the pandemic. But there must be documented days off work, IIRC. not just reduction in hours or reduction in income. I was tracking billable hours and could link work requests to zero billed days and COVID illness.
posted by muddgirl at 12:07 PM on June 10

(I should add I filed this form on my original 2020 1040. I don't have experience trying to amend.)
posted by muddgirl at 12:09 PM on June 10

Sorry to triple post, reading those reddit threads I am very concerned about the tone of many of them. It is the same tone that "ERC mills" used to advertise for fraudulent Employee Retention Credits.
posted by muddgirl at 12:25 PM on June 10 [1 favorite]

^in the first link in my answer, user GoatEatingTroll warns against "shadow preparer" mills and offers details (after someone mentions another member of the site offering assistance with this form).
posted by Iris Gambol at 12:43 PM on June 10 [1 favorite]

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