Covid-19 Tax Related Updates

Sick and Family Leave Tax Credit

Are you self-employed and a survivor of COVID-19? If so, you may be able to claim a sick and family leave tax credit under the Families First Coronavirus Response Act. The law allows certain self-employed individuals, who due to COVID-19 were unable to work or telework for reasons related to their health, to claim the refundable credit to offset their federal income tax.

The credit also applies to those unable to work or telework due to caring for a child with COVID-19. To claim the credit (up to $5,110) for 2020, the leave must have been taken between April 1, 2020, and Dec. 31, 2020. We’ll help determine your eligibility and file a form to claim the credit when we prepare your return. Contact your ATA representative for more information.