Paid Sick Leave - Freelancers

The following credits are available to self-employed individuals from April 1st - December 31st, 2020. They are only available for eligible self-employed individuals who are defined as individuals with Eligible Employers (other than himself or herself) subject to the requirements of the Families First Coronavirus Response Act.

Qualified Sick Leave Credit

Eligible self-employed individuals are eligible for paid sick leave, but the payment will be made through a tax credit on their 2020 tax return that will be filed in 2021 tax season. If the credits exceed your tax bill, you will receive a payment for the excess amount.

Another option, if you were to need the relief right away, is to apply the credit to this year's first estimated tax bill, which is due on June 30th.

If you are unable to work due to the following reasons:

  1. Subject to Federal, State, or local quarantine
  2. Advised by healthcare provider to self-quarantine
  3. Experiencing Covid-19 symptoms and seeking medical diagnosis

the, the credit will be calculated as:

If you are unable to work due to the following reasons:

  1. Caring for a sick family member subject to quarantine due to Covid-19
  2. Caring for a child whose school or care provider was closed due to quarantine

the, the credit will be calculated as:

Coronavirus Emergency Family Leave Credit

If you have an eligible employer (other than yourself), are entitled to paid family leave and are unable to work due to Covid-19 related reasons, you can also claim up to 50 days of a coronavirus emergency family leave credit. The credit is calculated as the lesser of:

  1. $200 multiplied by the number of qualified family leave days
  2. Your average daily self-employment income

The maximum amount of credit that can be claimed is no more than $10,000 (50 days X $200).