I forgot to claim a BIG tax credit for one of my own Schedule C clients and now I need to file an amended return. That’s why I wanted to drop a quick note to make sure none of your clients miss out on this somewhat “hidden” tax credit.
The Sick Pay and Family Leave Wages credits are claimed on Form 7202 and can be worth up to $7,110.
Short (PARTIAL) summary of who qualifies:
- Clients whose work was impacted by COVID-19 (had it, had to get tested for it and quarantine, etc.)
- Clients whose work was affected because they had dependents were out of school, or didn’t have daycare because of the pandemic
LOTS of clients qualify for these credits on 2020 tax returns.
If you missed one of these (or a bunch of them), it’s not too late to file amendments and get more money back for your Schedule C clients.
If you want to feel confident with tricky business taxes issues like the Sick Pay and Family Leave Wages credits, that’s the kind of thing we do in the Business Tax Verified Training Program.
If you want to see what’s included in our EA Exam Preparation Program, click here.