The Families First Coronavirus Response Act (FFCRA) was introduced in March 2020 to provide relief to individuals affected by COVID-19. It includes tax credits for self-employed individuals and 1099 workers who couldn’t work due to COVID-19 health issues, caregiving responsibilities, or school closures.

If you were self-employed in 2021 and were unable to work due to:
Being sick with COVID-19 or under quarantine orders,
Caring for someone else who was sick or quarantined,
Caring for a child due to school or daycare closures,
you may qualify for the FFCRA tax credit. This applies to 1099 contractors and freelancers as well as sole proprietors.

Under the American Rescue Plan Act (ARPA), the IRS extended the deadline to claim the 2021 FFCRA tax credit through April 2025. If you didn’t claim the credit when you filed your 2021 taxes, you can still amend your 2021 tax return to claim it.

You can claim:

Up to $511 per day (for up to 10 days) if you couldn’t work due to your own illness or quarantine.

Up to $200 per day (for up to 10 days) if you had to care for a sick individual or a child whose school was closed.

For extended caregiving (like school closures), you may claim up to $12,000 for 60 days of paid family leave.

ARPA extended the FFCRA provisions into 2021 and allowed self-employed individuals to continue claiming credits for lost workdays through September 30, 2021. Additionally, it increased the limits on credits you could receive for caregiving, further expanding benefits for those impacted by school and daycare closures.

Yes, but with limitations. You cannot use the same days and wages for both the FFCRA and ERC. However, self-employed individuals who also employed others can claim both credits as long as they apply them to separate periods and wages.

The Employee Retention Credit (ERC) is a separate relief measure aimed at helping businesses keep employees on their payroll. For self-employed individuals with employees, you can claim the ERC for wages paid to your employees during periods when your business was affected by COVID-19. However, if you don’t have employees, the ERC won’t apply to you personally—only the FFCRA tax credit can be used.

If you missed claiming the FFCRA credit when filing your 2021 tax return, follow these steps:
File an amended 2021 tax return (Form 1040-X).
Submit supporting documentation, such as medical records, quarantine orders, or notices from schools or daycare closures, to show your eligibility.
Consult a tax professional or a service specializing in COVID-19 tax credits to ensure you correctly claim this credit.

You have until April 2025 to claim the FFCRA tax credit for the 2021 tax year by filing an amended return.

Eligibility applies if:
You were unable to work due to COVID-19 illness, quarantine, or caregiving between April 1, 2020, and September 30, 2021.
Your inability to work was directly related to COVID-19 impacts, such as school or business closures.
It’s important to have records documenting the specific dates and reasons for your inability to work. Common documents include medical notes, quarantine orders, or childcare/school closure notices.

Yes, but you cannot claim the same wages covered by unemployment benefits or PPP loan forgiveness for the FFCRA credit. For example, if you received unemployment during part of the time you were out of work, you can only claim the FFCRA credit for any additional lost workdays not covered by unemployment or PPP.

Once you file an amended 2021 return, the IRS can take up to 16 weeks to process your claim and issue a refund.

You can consult a tax professional or services that specialize in COVID-19 tax relief. Many of these services offer assistance in preparing amended returns and ensuring you qualify for the maximum credit possible.

While the FFCRA credit provides relief for self-employed individuals unable to work due to illness or caregiving, the Employee Retention Credit (ERC) is aimed at employers to encourage them to keep workers on the payroll during COVID-19 disruptions. Self-employed individuals without employees should focus on claiming the FFCRA credit, while those who employ others may benefit from both the ERC and FFCRA.

No, the FFCRA credit is a tax credit, not taxable income. It directly reduces the amount of tax you owe, increasing your potential refund.

If you already filed and didn’t claim the credit, you can file an amended return to take advantage of this opportunity. Be sure to gather all relevant documentation to support your claim.

You can refer to the IRS website or seek help from tax credit experts who specialize in FFCRA and COVID-19 relief for self-employed individuals.