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  • In March 2020, the Families First Coronavirus Response Act (FFCRA) was enacted into law, aiming to assist companies in providing paid sick leave and unemployment benefits in response to COVID-19. Initially tailored to support employers with W-2 employees, the FFCRA aimed to help them navigate the economic challenges brought about by the pandemic.

    Subsequently, in December 2020, Congress approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which extended the coverage of the FFCRA beyond traditional employers to include self-employed individuals. Thanks to this expansion, individuals such as freelancers, independent contractors, and gig workers now qualify for tax credits. These credits serve as a reimbursement for income lost due to COVID, essentially compensating for the time that would have been spent earning money.

    The FFCRA, a federal response to the COVID-19 pandemic, encompasses various provisions, including paid sick leave, free COVID-19 testing, food assistance, unemployment benefits, and protection for employer-provided health insurance. Notably, for self-employed individuals, the legislation offers parallel coverage through tax credits that can be claimed on their income tax returns, providing reimbursement for periods of sick leave related to COVID-19.

  • The FFCRA Tax credit has a maximum potential value of $32,200, determined by your self-employed net earnings in both 2020 and 2021.

    To compute your FFCRA credit, we analyze your daily average self-employment income, calculated as your net earnings for the taxable year divided by 260. Additionally, we consider the extent of self-employment work missed due to COVID-19-related issues. This methodology enables the IRS to estimate the financial impact of each day you were unable to work, providing insight into the amount lost in wages during those periods.

  • At first, the FFCRA primarily targeted employers with W-2 employees. Although the CARES Act, passed later in the same year, extended Tax Credits to the self-employed, this expansion received limited publicity. Studies indicate that more than 80% of self-employed individuals are unaware of their eligibility for FFCRA tax credits.

  • The Paycheck Protection Program (PPP) and Families First Coronavirus Response Act (FFCRA) are distinct measures designed to address the economic repercussions of the COVID-19 pandemic. PPP aids small businesses through loans, which may be eligible for forgiveness. In contrast, FFCRA does not involve loans but rather provides tax credits based on taxes individuals have already paid. While PPP primarily supports businesses, FFCRA is specifically geared toward providing support to individuals.

  • The amount you are eligible to receive is contingent on your average daily self-employment income and the number of days missed in self-employed work due to COVID-related issues, including government quarantine orders, self-quarantine, COVID-19 symptoms, and seeking medical diagnosis.

    For the childcare component, the credit is determined by multiplying the number of days on leave and selecting the lesser of:

    - Your average daily self-employment income for the year, or

    - $511.

    The credit for missing self-employment work due to a personal COVID-related issue or caring for another person is computed by multiplying the number of days on leave and selecting the lesser of:

    - ⅔ of your average daily self-employment income, or

    - $200.

    The FFCRA CREDIT portal guides you through these straightforward steps and computes your maximum FFCRA tax credit.

  • On average, FFCRA credit customers have obtained an FFCRA refund amounting to $9,400.

  • The IRS will issue a check for your 2020 and/or 2021 FFCRA tax credit to the mailing address linked to your FFCRA CREDIT account. It's important to be aware that if you have any existing tax obligations, the refund will initially be applied to offset the outstanding tax balance.

  • The IRS may take up to three weeks to confirm the acceptance of your FFCRA credit application. Following acceptance, it can take up to 20 weeks to receive your refund, either through a check or direct deposit.

  • Certainly, the deadline for amending your 2020 and/or 2021 tax return to claim or adjust FFCRA credits is within three years from the original due date of the return or within two years from the date you paid the tax, whichever is later. Specifically, the deadline to file for the FFCRA tax credits for your 2020 tax return is April 15, 2024, and for your 2021 tax return, it is April 15, 2025.

  • FFCRA is not a loan; it is a tax credit. Additionally, it is distinct from a grant, operating as a refund for taxes previously paid. These tax credits are structured to address expenses comparable to those covered by mandatory paid leave for employees. If you find yourself unable to work due to COVID-19-related reasons, such as illness, caregiving, or conditions preventing work, these credits are designed to provide compensation for the income lost during such periods.

  • Applying for the FFCRA tax credit will not affect the filing of your 2023 annual income taxes. To secure the FFCRA tax credits, our team of CPAs will make amendments to the taxes you have previously filed for the years 2020 and 2021.

  • To claim the FFCRA tax credits, you'll need to assess your eligibility and revise your 2020 and/or 2021 tax returns along with their supporting schedules. While it is recommended to engage a Certified Public Accountant (CPA) for optimal results, this process can consume significant time and resources. Alternatively, click the "Get Started" button in the top right corner of your screen, respond to the pre-qualification questions, and allow FFCRA Credit to handle it for you! Our team of CPAs has developed the quickest, safest, and most user-friendly tool for self-employed individuals and sole proprietors to secure the federal FFCRA tax credits they are entitled to.

FFCRA Eligibility

  • To be eligible for the FFCRA, you must fulfill the following requirements:

    1. Identify as a self-employed individual, encompassing various roles such as sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLCs. This list is not exhaustive.

    2. Have filed a Schedule SE of IRS Tax Form 1040 in either 2020 and/or 2021, demonstrating positive net income and the payment of self-employment tax on your earnings.

    3. Have experienced a loss of work due to issues related to COVID-19.

  • To qualify for FFCRA tax credits, you need to have missed self-employment work due to COVID-related reasons. If your inability to work was due to any of the following circumstances, you may be eligible:

    1. A government agency imposed a quarantine or isolation order.

    2. Your doctor recommended self-quarantine.

    3. You had COVID-19 symptoms while awaiting a doctor's appointment.

    4. You were waiting for COVID-19-related test results.

    5. You were receiving the COVID-19 vaccine.

    6. You were experiencing side effects from the COVID-19 vaccine.

    7. You provided care for your children affected by school or daycare shutdowns.

    8. You cared for someone else, such as a family member, dealing with COVID-19 issues.

  • The FFCRA encompasses the days when you were unable to engage in self-employment work within the timeframe of April 1, 2020, to September 30, 2021.

    Here is a breakdown of the eligible days for different scenarios:

    1. Childcare-related time off - up to 110 days:

    - 50 days between April 1, 2020, and March 31, 2021

    - 60 days between April 1, 2021, and September 30, 2021

    2. Time off for yourself or a loved one - up to 20 days:

    - 10 days between April 1, 2020, and March 31, 2021

    - 10 days between April 1, 2021, and September 30, 2021

  • In the United States, a self-employed individual, as defined by the Internal Revenue Service (IRS), is typically someone to whom the following criteria apply:

    1. Engaging in a trade or business as a sole proprietor or an independent contractor.

    2. Being a member of a partnership involved in a trade or business.

    3. Operating a business independently, which includes part-time businesses or gig workers.

    The FFCRA credit platform is specifically crafted to aid sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLCs. Our services extend to individuals across diverse industries, including but not limited to realtors, estheticians, hair stylists, taxi drivers, financial consultants, graphic designers, event staff, and construction workers.

  • You can still qualify for the FFCRA tax credit even if you received unemployment benefits. However, you cannot claim the days you received unemployment benefits as days you were not able to work due to COVID-19 related issues.

  • You could still qualify for FFCRA tax credits if you earned self-employment income alongside your W-2 salary in 2020 and/or 2021. However, if you are a W-2 employee and your employer has already filed for FFCRA credits on your behalf, you may not be eligible to utilize the FFCRA credit platform.

    If you receive paid leave benefits as an employee, it might impact the tax credit amount you can claim as a self-employed individual under the FFCRA. You cannot claim double benefits for the same period. Nevertheless, if your employee situation doesn't fully cover your needs, there could be an opportunity to claim additional credits based on your self-employment income.

  • Regrettably, if you have already received Sick & Family Leave credits for 2020 or 2021, you are not eligible for FFCRA tax credits through the FFCRA Credit portal. Should you believe that you may be entitled to additional sick & family leave credits, we recommend consulting with a CPA or tax attorney for further guidance.

About FFCRA CREDIT

  • The FFCRA Credit is a groundbreaking platform created by tax professionals to aid self-employed individuals, including independent contractors, gig workers, freelancers, and more, in securing the FFCRA tax credits rightfully due to them. Our platform handles the process of amending your tax returns and submitting your application to the IRS, allowing you to dedicate your precious time to the essential task of growing your business.

  • Certainly, if you were unable to engage in self-employment work during a weekend, you are eligible to claim weekends as days missed.

  • Indeed, you may be eligible for caring for a child other than your own under the "Caring for Others" section of our portal.

  • Certainly, if the physical location where your child received instruction or care was closed, it is considered "closed" for the purposes of paid sick leave and expanded family and medical leave. This remains true even if your child is still expected or required to complete assignments.

  • To be eligible for the FFCRA income tax credit, the IRS mandates positive net earnings as a requirement. Positive net earnings signify taxable income against which the credit can be applied. We acknowledge the widespread impact of the Covid-19 pandemic. If your 2020 earnings were not positive due to Covid-19 restrictions, we may consider using your 2019 net income.

  • The FFCRA Credit platform does not necessitate the submission of your 2020 and/or 2021 tax return. Our automated process is tailored to streamline the entire FFCRA tax refund procedure, ensuring simplicity and ease. Developed by CPAs, our platform alleviates the stress associated with calculations and intricate tax queries. We handle the complete process of amending your tax returns and submitting your application to the IRS.

  • Please refer to "Who Qualifies for the FFCRA tax credits?" for eligibility details.

    Moreover, it's important to note that FFCRA Credit can exclusively amend e-filed returns. If your 2020 and 2021 tax returns were submitted on paper, kindly consult your financial advisor for guidance on the next steps.

FFCRA Credit Processing Fees

  • The processing fee for FFRCA Credit is 20% - 33% of your total refund (depending on the qualifying amount).This fee encompasses the substantial costs associated with obtaining your official tax records, the CPA's efforts in calculating and filing your paperwork, and legal fees ensuring compliance with relevant tax laws. Payment of FFRCA Credit fees can be conveniently made via PayPal at the time of filing, using any credit or debit card linked to your PayPal account.

    For fees totaling $1,500 or less, you have the option to pay in (4) interest-free installments, beginning at the time of filing, with (3) subsequent repayments every 15 days.

    For larger refunds with processing fees exceeding $1,500, you can opt to finance your payments monthly directly through PayPal. The "Pay Monthly" installment loan application requires certain personal information, including address, the last 4 digits of your Social Security Number or Individual Tax Identification Number, date of birth, annual gross income, and phone number/type. Applying for "Pay Monthly" will not impact your credit score. If approved and utilized, PayPal may report the loan amount and payment history to credit reporting agencies, potentially affecting your credit score. This option allows you to choose payment periods of 12, 24, or 36 months, contingent on your state of residence. You must be at least 18 years old and have a PayPal account in good standing or open one to apply. If the monthly option is not visible in your account, please contact PayPal directly.

    It's important to note that having a PayPal account is not mandatory for upfront payments; you can use your debit or credit card at guest checkout. However, for payments in 4 installments or monthly, you must sign into your PayPal account or create one if you don't have one.

    Disclaimer: In the event you do not receive your tax credit for any reason, we will reimburse any fees paid.

  • Certainly. To settle the FFRCA Credit processing fee without logging into a PayPal account, simply choose the "Pay Now" option. From there, enter your debit or credit card information into the provided fields.

  • "Pay Monthly" stands as one of our secure PayPal payment alternatives tailored for larger refunds and processing fees exceeding $1500. With this option, you can spread your FFRCA Credit fee payments over 12, 24, or 36 months. The application process for the "Pay Monthly" installment loan requires users to input specific personal details, including their address, the last 4 digits of their Social Security Number or Individual Tax Identification Number, date of birth, annual gross income, and phone number/type. Notably, applying for "Pay Monthly" will not impact your credit score. In the event that your "Pay Monthly" installment loan is approved and utilized, PayPal may report the loan amount and payment history to credit reporting agencies, potentially influencing your credit score. The availability of this option depends on your state of residence, and you must be at least 18 years old. Additionally, having a PayPal account in good standing or opening one is necessary for application. If the monthly option is not visible in your account, please reach out to PayPal directly.

  • "Pay in 4" is a secure PayPal payment option enabling you to divide your FFRCA Credit fee into (4) interest-free installments. It's important to be aware that this payment option is exclusively accessible if your FFRCA Credit processing fee is below $1,500. If your FFRCA Credit processing fee exceeds $1,500, the "Pay in 4" option will not be available for your use.

  • Certainly, you have the option to divide your payments between any two credit cards associated with your PayPal account. Please ensure that you add a debit or credit card to your PayPal account before choosing your payment method.

Tax Questions & Terminology

  • A dependent, as defined by the IRS, can be either a qualifying child or relative of the taxpayer. The relative may include a child, stepchild, foster child, sibling, parent, grandparent, grandchild, aunt, uncle, niece, nephew, or certain in-law relationships.

    For a child to qualify, they must have lived with you for more than half of the tax year, and temporary absences, like those for education or medical care, are generally considered periods of living with you. Additionally, you must have provided more than half of the relative's total support during the tax year, and the relative's gross income must fall below a threshold determined annually by the IRS (subject to change). These are general guidelines, and there may be additional rules and exceptions. Detailed information can be found in IRS publications, such as IRS Publication 501.

    A dependent must meet one of the following criteria:

    1. Under age 19 at the end of the tax year and younger than the taxpayer (or the taxpayer’s spouse, if filing jointly).

    2. A full-time student under the age of 24 at the end of the year and younger than the taxpayer (or spouse, if filing jointly).

    3. Any age if permanently and totally disabled at any time during the year.

  • The IRS Form 1040 serves as the typical individual income tax form in the United States, enabling taxpayers to report their yearly income and determine their tax liability. When applying for the FFCRA tax credits, FFRCA Credit will modify your previously submitted IRS Form 1040.

  • IRS Form 1040X is utilized for revising a previously filed individual tax return. When applying for the FFCRA tax credits, FFRCA Credit will amend your previously filed IRS Form 1040 by completing Form 1040-X.

  • Schedule SE is a tax form employed by self-employed individuals to compute the self-employment tax due, encompassing Social Security and Medicare taxes for those working independently.

    While all businesses may be eligible for FFCRA tax credits, FFRCA Credit currently exclusively handles self-employed individuals. To qualify for the FFCRA tax credit as a self-employed individual, it is essential to have self-employment income listed on line 6 of Schedule SE.

  • Schedule C is a tax form employed by sole proprietors, single-member LLCs, and specific self-employed individuals for reporting business income and expenses. Submitted as part of the individual's personal income tax return (Form 1040), this form aids in computing the net profit or loss from the business, crucial for determining the individual's total taxable income. The net income (line 31) from Schedule C plays a pivotal role in calculating self-employment income, as reflected on line 2 of Schedule SE (Form 1040).

    While this information may not be directly visible in the application, it is vital to understand that Schedule C contributes to the comprehensive calculation of self-employment income on Schedule SE (Form 1040).

  • IRS Form 7202 is a tax form designed for claiming the Families First Coronavirus Response Act (FFCRA) credits specifically applicable to self-employed individuals. Completion of this form is necessary to calculate the overall FFCRA credit amount that self-employed individuals are eligible for due to COVID-19-related reasons.

  • IRS Form 8821, known as the Tax Information Authorization form, serves to grant authorization for the release of your tax information to a designated third party, such as a tax professional, for a specified period. Once signed, Form 8821 enables FFCRA Credit to access the necessary tax information required for accurate calculation of your FFCRA credit and the amendment of your 2020 and/or 2021 tax returns to claim FFCRA tax credits. It's important to note that while this form allows FFCRA Credit to receive and inspect confidential tax information, it does not authorize the designated party to represent the taxpayer before the IRS. For representation purposes, a separate form, such as Form 2848 (Power of Attorney and Declaration of Representative), would be required.

  • For customers who filed their 2020 and/or 2021 tax returns with a Married Filing Joint status, the IRS mandates the inclusion of both spouses' signatures on the amended tax returns before acceptance. FFCRA Credit similarly necessitates identity verification from both spouses. However, if you were married and filed as Head of Household or Married Filing Separate, neither the IRS nor FFCRA Credit requires any information or signature.

  • In case you have outstanding tax liabilities, the IRS will utilize your FFCRA credit to offset your existing balance. Any remaining FFCRA credit will then be issued to you in the form of a check.