If you were self-employed during Covid-19, you may well have lost out on earnings due to illness or government-instructed quarantine. Find out how much you can claim back in tax credit with this new FFCRA tool.
Covid-19 was tough for us all, but the impact on freelancers and gig workers was particularly brutal. Although there are many benefits to being self-employed, it also comes with its fair share of challenges and, during the pandemic, these challenges increased significantly. Widespread quarantine and illness led to significant loss of income and with no employer benefits, freelancers and gig workers were left fending for themselves.
Until, that is, congress passed the Coronavirus Aid, Relief and Economic Security Act which expanded the FFCRA to include self-employed workers.
Wait... so even though I was self-employed, I can still recover loss of earnings from Covid-19-related sickness? Correct - but, unfortunately, not that many people know about it.
Using the first-ever SETC application tool announced by HeyDay Marketing HQ, freelancers, and gig workers can check if they qualify for federal FFCRA (Families First Coronavirus Response Act) tax credits.
Data from the National Library of Medicine reveals that between February and April 2020 alone the number of US self-employers decreased by 22%, equating to 3.3 million business owners. Out of 5800 self-employed businesses, 43% temporarily closed because of the pandemic. With these statistics in mind, HeyDay Marketing HQ is promoting an FFCRA tool to help you recover lost earnings due to government quarantine orders, self-quarantine, or medical diagnosis of Covid-19.
Using the online tool, you can find out how much credit you are eligible for, up to $32,220. You will need to enter the reason for your leave, such as quarantine, illness, vaccination, or childcare, to get an accurate calculated rate. For example, self-leave is claimed at the full daily rate of up to $511 per day whereas family or childcare leave is calculated at 2/3 of daily self-employed income.
“You will have to calculate your daily average of self-employment income. This is your net earnings for the taxable year divided by 260 (the standard recognized amount of working days in a year). This allows the IRS to estimate how much you lost in wages for every day you were not able to work,” explains the company.
Hate paperwork? You're not the only one! Understanding that filing with the IRS can be a daunting task, The team behind the tool has partnered with a trusted accountant firm, specializing in Covid relief programs, to support you with the associated forms. “We’ll take care of amending your tax returns and submitting your application to the IRS, so you can get back to doing what matters most: growing your business,” says the company.
HeyDay Marketing HQ stresses the difference between self-employed tax credits and loans, explaining that the FFCRA is a refund of taxes that have already been paid. So I won't have to pay it back? Brilliant!
Once credit allowance has been determined, you should receive acceptance from the IRS within three weeks. Receipt of funds can take up to 20 weeks from application via check or direct deposit.
Find out how you can claim back today by heading over to https://heydaynola.com/setc