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Self-Employed Sick Leave Credit

The credit applies if the taxpayer was self-employed and would have qualified for paid sick leave if the taxpayer had been employed by someone required to offer paid leave.  The maximum creditable family leave days is 10 per calendar year.  Documentation requirements will be issued by the IRS and forth coming.

If the taxpayer is unable to work or telework due to a need for leave because:  1) The employee is subject to a federal, state or local quarantine or isolation order related to coronavirus, 2) A health care provider advised the employee to self-quarantine due to concerns related to coronavirus, 3) The employee is experiencing symptoms of coronavirus and seeking a medical diagnosis, 4) The employee is caring for an individual who is subject to an order described in #1 or an advisory described in #2, 5) The employee is caring for the employee’s son or daughter due to closure of school or place of care, or the childcare provider of such son or daughter is unavailable due to coronavirus precautions, or 6) The employee is experiencing any other substantially similar condition to be determined.

 

Under #1, #2, or #3 above, the refundable tax credit is equal to the number of days the taxpayer was unable to work multiplied by the lesser of: $511  or 100% of average daily SE income for the tax year.

Under #4, #5, or #6 above,  the refundable tax credit is equal to the number of days the taxpayer was unable to work multiplied by the lesser of: $200  or 67% of average daily SE income for the tax year.