Families First Coronavirus Response Act (FFCRA) Tax Credit

Background

March 2020

The FFCRA is passed to help the United States combat COVID-19 by providing small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19. The FFCRA extends to self-employed individuals equivalent refundable tax credits against net income tax. As initially written, days taken between April 1, 2020 and December 31, 2020 are eligible to qualify for these credits.

December 2020

The Consolidated Appropriations Act of 2021 is passed which extended the initial FFCRA credit to cover days between January 1, 2021 and March 31, 2021.

March 2021

The American Rescue Plan Act of 2021 is passed which created a second time period of eligibility for FFCRA credits for days between April 1, 2021 and September 30, 2021. This second round of the credit expanded the eligible day qualification reasons to include immunization-related leave.

IRS Guidelines for Qualifying Care (self, child, others)

You were subject to a federal, state, or local quarantine or isolation order related to COVID-19.
You were advised by a health care provider to self-quarantine due to concerns related to COVID-19.
You were experiencing symptoms of COVID-19 and seeking a medical diagnosis of COVID-19.
You were seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of COVID-19.
You were exposed to COVID-19 or were unable to work pending the results of a test or diagnosis.
You were obtaining immunization related to COVID-19.
You were recovering from any injury, disability, illness, or condition related to such immunization.
You were caring for an individual who was subject to a federal, state, or local quarantine or isolation order related to COVID-19.
You were caring for an individual who had been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
You were caring for a son or daughter because the school or place of care for that child was closed or the childcare provider for that child was unavailable due to COVID-19 precautions.
You were accompanying an individual to obtain immunization related to COVID-19.
You were caring for an individual who was recovering from any injury, disability, illness, or condition related to the immunization.

Additional Eligibility Requirements

ELIGIBILITY REQUIREMENTS

1099 or self-employed business owner
Net earnings from self-employment
COVID-19 related qualifying care

DOCUMENTATION REQUIREMENTS

Forms 1040 for 2019 – 2021 (Schedule SE)
Forms W-2 for 2020 and 2021 (if applicable)
Dates COVID-19 care impacted individual

SELF-EMPLOYED LEAVE FFCRA (“SELF”) TAX CREDIT

What is the FFCRA?