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You can still qualify for up to $32,220! COVID relief for 1099 workers, independent contractors, and business owners

You could be eligible for this self-employed tax credit if you have a 1099 (2020 or 2021) and a Schedule SE or Schedule C showing profit. Just complete the eligibility questionnaire to see how much credit you could receive. Don’t wait; the 2020 credit will go away soon.

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Recover COVID losses

SETC

Our lightning-fast, streamlined process allows for faster results and means you will get your refund faster.

Three Simple Steps to your refund

  • Complete the eligibility questionnaire and upload the required documents by clicking the "Get started" button below.
  • Let our experts evaluate your claim and calculate your potential credit to ensure you get the maximum credit.
  • File your amended returns with the IRS and wait for your check.
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We've partnered with Self Employed Credits LLC — a team of experts with unique processes and tools to help self-employed individuals and sole proprietors claim the SETC.

Self Employed Credits LLC has a team of trusted professionals who focus on supporting self-employed individuals like you. They genuinely understand the Families First Coronavirus Response Act and American Rescue Plan Act. Claim your credit and get it processed before it’s too late.

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Easy Application

Complete an online eligibility application

Receive Confirmation

Get your approved refund from our accountants and CPAs

Secure Funds

Receive funds within 20 weeks!

There is no risk or obligation!

You only pay after you know what your credit will be

You’ll be happy to know that a government COVID relief program is still available and specific to your needs! You can claim the Self-Employed Tax Credit right now. The window for applications is expiring soon, so you need to act fast to take advantage of this life-changing credit.

  • Fast eligibility check through the FFCRA tax program
  • Up to $32,220 ($64,440 per couple) in fully refundable tax credits
  • No upfront fees or obligation — pay nothing until you know your credit amount and decide to move forward
  • Everything is done for you for one flat fee ($1,995)
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Frequently asked questions

The Families First Coronavirus Response Act (extended by the Consolidated Appropriations Act) and the American Rescue Plan offer tax credits to individuals through paid sick leave and extended family and medical leave for COVID-19-related reasons.

The IRS will refund you for your 2020 and 2021 tax credits via a check. Please note that the IRS will first use the credit to offset the tax balance if you have any outstanding tax liabilities.

The PPP (Paycheck Protection Program), under the CARES Act, aids in retaining employees on payroll, offering loans potentially forgivable for small businesses. Qualified Sick & Family Leave wage credits, stemming from the FFCRA, Consolidated Appropriations Act, and the American Rescue Plan, provide tax credits for individuals without requiring repayment. While PPP targets business support, Qualified Sick & Family Paid Leave wage credits aim to assist individuals affected by the economic impact of missing work due to the COVID-19 pandemic.

Yes. The deadline to amend your 2020 and 2021 tax returns for claiming or adjusting Qualified Sick & Family Paid Leave credits is three years from the return's original due date. For the Qualified Sick & Family Paid Leave wage credits, the deadline for amending your 2020 tax return is April 15, 2024, and your 2021 tax return is April 15, 2025.

No. The Self-Employed Tax Credit functions as a tax credit, not a loan or grant. Tailored to address needs similar to those covered by mandatory paid leave for employees, these tax credits aim to compensate for income lost due to COVID-19-related circumstances. Whether you were sick, caring for someone affected by COVID-19, or facing conditions hindering your ability to work, these credits aim to alleviate the financial impact on your income.

You must fulfill specific requirements to be eligible for Self-Employed Qualified Sick & Family Paid Leave wage credits. These requirements include being self-employed, encompassing categories such as sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLCs. Additionally, you must have filed a Schedule SE of IRS Tax form 1040 in either 2020 or 2021, showing a positive net income and the payment of self-employment tax on your earnings. Furthermore, qualification entails missing work due to issues directly related to COVID-19.

An eligible self-employed individual is defined as an individual who regularly carries on any trade or business within the meaning of section 1402 of the Code, and would be eligible to receive qualified sick leave wages or qualified family leave wages that would have satisfied the requirements of the EPSLA or Expanded FMLA, as amended for purposes of the ARP, if the individual were an employee of an Eligible Employer (other than the self-employed individual) that would have been subject to the requirements of the EPSLA or Expanded FMLA, as amended for purposes of the ARP.

Eligible self-employed individuals are allowed a credit against their federal income taxes for any taxable year equal to their "qualified sick leave equivalent amount" or "qualified family leave equivalent amount."

For an eligible self-employed individual who is unable to work because the individual:

  • is subject to a Federal, State, or local quarantine or isolation order related to COVID-19;
  • has been advised by a health care provider to self-quarantine due to concerns related to COVID-19; or
  • is experiencing symptoms of COVID-19 and seeking a medical diagnosis,seeking or awaiting the results of a diagnostic test for, or a medical diagnosis of, COVID-19 and the individual has been exposed to COVID-19 or is unable to work pending the results of the test or diagnosis, or obtaining immunization related to COVID-19 or recovering from any injury, disability, illness, or condition related to the immunization,

the qualified sick leave equivalent amount is equal to the number of days during the taxable year that the individual cannot perform services in any trade or business for one of the three above reasons, multiplied by the lesser of $511 or 100 percent of the "average daily self-employment income" of the individual for the taxable year, or the prior taxable year.

For an eligible self-employed individual who is unable to work because the individual is:

  • caring for an individual who is subject to a Federal, State, or local quarantine or isolation order related to COVID-19, or has been advised by a health care provider to self-quarantine due to concerns related to COVID-19;
  • caring for a child if the child's school or place of care has been closed, or child care provider is unavailable due to COVID-19 precautions; or
  • experiencing any other substantially similar condition specified by the Secretary of HHS in consultation with the Secretary of the Treasury and the Secretary of Labor. The Secretary of HHS has specified, after consultation with the Secretaries of Treasury and Labor, that a substantially similar condition is one in which the employee takes leave to accompany an individual to obtain immunization related to COVID-19, or to care for an individual who is recovering from any injury, disability, illness, or condition related to the immunization.

the qualified sick leave equivalent amount is equal to the number of days during the taxable year that the individual cannot perform services in any trade or business for one of the three above reasons, multiplied by the lesser of $200 or 67 percent of the "average daily self-employment income" of the individual for the taxable year, or the prior taxable year.

In either case, the maximum number of days a self-employed individual may take into account in determining the qualified sick leave equivalent amount is ten.

Note: The only days that may be taken into account in a taxable year in determining the qualified sick leave equivalent amount for the year are days occurring during the year and during the period beginning on April 1, 2021, through September 30, 2021.

Maybe. A partner in a partnership is a self-employed individual if the partner's distributive share constitutes net earnings from self-employment or if the partner receives guaranteed payments for services. If the partner is a self-employed individual and is not able to work for reasons related to COVID-19, the partner is eligible for the tax credits.

Generally, partners in a partnership (including members of a limited liability company (LLC) that is treated as a partnership for federal tax purposes) are considered to be self-employed, not employees, when performing services for the partnership.

An individual regularly carries on a trade or business for purposes of being an eligible self-employed individual for the qualified sick leave equivalent credit and/or the qualified family leave equivalent credit if the individual carries on a trade or business within the meaning of section 1402 of the Code, or is a partner in a partnership carrying on a trade or business within the meaning of section 1402 of the Code. Section 1402(c) of the Code defines trade or business and includes exceptions to this standard for purposes of section 1402 of the Code.

Average daily self-employment income is an amount equal to the net earnings from self-employment for the taxable year, or prior taxable year, divided by 260. A taxpayer's net earnings from self-employment are based on the gross income that the individual derives from the taxpayer's trade or business minus ordinary and necessary trade or business expenses.

Yes, but the qualified sick or family leave equivalent amounts are reduced by the qualified sick or family leave wages.

That is, if a self-employed individual is entitled to a refundable credit for a qualified sick leave equivalent amount under 9642(a) of the ARP, and also receives qualified sick leave wages as an employee, section 9642(e)(2) of the ARP reduces the qualified sick leave equivalent amount for which the self-employed individual may claim a tax credit to the extent that the sum of the qualified sick leave equivalent amount described in section 9642(c) of the ARP and any qualified sick leave wages under section 3131(b)(1) of the Code, exceeds $2,000 (or $5,110 in the case of any day any portion of which is paid sick time described in paragraph (1), (2), or (3) of section 5102(a) of the EPSLA, as amended for purposes of the ARP).

Similarly, if a self-employed individual is entitled to a refundable credit for a qualified family leave equivalent amount under section 9643(a) of the ARP, and also receives qualified family leave wages as an employee , section 9643(e)(3) of the ARP reduces the qualified family leave equivalent amount for which the self-employed individual may claim a tax credit to the extent that the sum of the qualified family leave equivalent amount described in section 9643(c) of the ARP and the qualified family leave wages under section 3132(b)(1) of the Code, exceeds $12,000.

Example: In her capacity as an employee, Taxpayer A receives $4,000 in qualified sick leave wages, comprised of:

  • $3,000 in qualified sick leave wages for reasons described in paragraphs (1), (2), or (3) of section 5102(a) of the EPSLA, as amended for purposes of the ARP; and
  • $1,000 in qualified sick leave wages for reasons described in paragraphs (4), (5), or (6) of the EPSLA, as amended for purposes of the ARP.

In addition, in her capacity as a self-employed individual, Taxpayer A is eligible for a $3,300 qualified sick leave equivalent credit comprised of:

  • $2,500 in qualified sick leave equivalent credits for reasons described in paragraphs (1), (2), or (3) of section 5102(a) of the EPSLA, as amended for purposes of the ARP; and
  • $800 in qualified sick leave equivalent credits for reasons described in paragraphs (4), (5), or (6) of section 5102(a) of the EPSLA, as amended for purposes of the ARP.

Taxpayer A must reduce the $3,300 qualified sick leave equivalent credit for which she is eligible by $2,190, which is comprised of:

  • the excess of the qualified sick leave wages and qualified sick leave equivalent amounts for reasons described in paragraphs (1), (2), or (3) of section 5102(a) of the EPSLA over $5,110 (that is, $390); plus
  • the excess of the qualified sick leave wages and qualified sick leave equivalent amounts for reasons described in paragraphs (4), (5), or (6) of section 5102(a) of the EPSLA over $2,000 (that is, $0); plus
  • the remaining excess of the total leave credits to which Taxpayer A is entitled in her capacity as either an employee or a self-employed individual over $5,110 (that is, $1,800).

Accordingly, Taxpayer A may claim a qualified sick leave equivalent credit of $1,110.

Example: In his capacity as an employee, Taxpayer B receives $8,000 in qualified family leave wages. In addition, in his capacity as a self-employed individual, Taxpayer B is eligible for a $4,500 qualified family leave equivalent credit. Taxpayer B may claim a qualified family leave equivalent credit of $4,000, because he must reduce the qualified family leave equivalent amount to which he is entitled to the extent that the sum of the qualified family leave equivalent amount and his qualified family leave wages (that is, $12,500) exceeds $12,000 (that is, $500).

No, the amount of the credits allowed under sections 9642 and 9643 of the ARP are not included in the gross income of the eligible self-employed individual.

Self-employed individuals should maintain documentation establishing their eligibility for the credits as a self-employed individual. That documentation should be similar to the documentation that employers claiming the credits for qualified leave wages under sections 3131 and 3132 of the Code should maintain. See "How Should an Eligible Employer Substantiate Eligibility for Tax Credits for Qualified Leave Wages?".

Yes. The qualified sick leave equivalent credits and qualified family leave equivalent credits under sections 9642 and 9643 of the ARP, respectively, are available to NRAs who otherwise meet the requirements to claim the tax credits. That is, an individual's status as an NRA does not preclude the individual from claiming the tax credits if the individual both (1) regularly carries on a trade or business within the meaning of section 1402 of the Code, and (2) would be eligible for paid leave that would have satisfied the requirements of the EPSLA or Expanded FMLA, as amended for purposes of the ARP, if the individual was an employee of an Eligible Employer (other than the self-employed individual).

It depends. If a self-employed individual who claimed the qualified leave equivalent credits for qualified sick and/or family leave equivalent amounts for the period beginning April 1, 2021, and ending September 30, 2021, receives a Form W-2c, Corrected Wage and Tax Statement, reporting corrected amounts of sick and/or family leave wages in Box 14 (or receives a corrected statement) for this period, the individual must recalculate the credit on the 2021 Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. If the amount of the qualified leave equivalent credit has changed from the amount claimed on the individual’s 2021 Form 1040, U.S. Individual Income Tax Return, the individual must file a Form 1040-X, Amended U.S. Individual Income Tax Return, for 2021 with the corrected amounts from the Form 7202.

The self-employed individual may cover sick leave and family leave equivalents by taking into account the credit to which the individual is entitled and will claim on Form 1040, U.S. Individual Income Tax Return PDF, in determining required estimated tax payments. This means that a self-employed individual can effectively reduce payments of estimated income taxes that the individual would otherwise be required to make if the individual was not entitled to the credit on the Form 1040.

Yes. If an individual is an independent contractor who generally performs services for multiple clients as a nonemployee, the individual is self-employed and is eligible for the tax credits for days the individual is not able to work for reasons related to COVID-19.

Eligible self-employed individuals are allowed a credit against their federal income taxes for any taxable year equal to their "qualified sick leave equivalent amount" or "qualified family leave equivalent amount."

For more information on whether an individual is an independent contractor or an employee, and the tax consequences of either status, see Self-Employed Individuals Tax Center.

The refundable credits are claimed on the self-employed individual's Form 1040, U.S. Individual Income Tax Return PDF.

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