Being self-employed in the era of COVID-19 has been like navigating a ship in a storm. The pandemic brought unprecedented challenges, but there’s a beacon of hope: the Self-Employed Tax Credit (SETC). Introduced as part of the Families First Coronavirus Response Act (FFCRA) in March 2020, this credit is a critical support for self-employed individuals. Let’s dive into what the SETC is and how it can help you.
The Start of Self Employed Tax Credits (SETC)
A Glimpse at the Numbers
Who Qualifies for the SETC?
If you’re a self-employed individual or sole proprietor who missed work due to Covid-19 related reasons, you might be eligible. This includes time off for vaccinations, quarantine, illness, or childcare. Here’s a breakdown:
- Sick Leave: This covers situations like being under quarantine, experiencing COVID-19 symptoms, seeking a medical diagnosis, caring for someone with a COVID-19 diagnosis, and childcare disruptions due to the pandemic.
- Family Leave: Initially for childcare when schools or facilities were closed, the ARP expanded this to include all qualifying reasons for paid sick leave.
The ARP went a step further, including time off for COVID-19 vaccinations, recovery from related illnesses, or accompanying someone for immunizations. It also covers caring for individuals recovering from an illness or condition related to COVID-19 vaccinations.
Is the SETC Right for You?
If you’ve faced work interruptions due to the pandemic, the SETC could be a significant financial relief. Whether it was for your own health, caring for a loved one, or managing childcare challenges, this tax credit is designed to ease the burden.