Financial Relief for the Self-Employed: Navigating Tax Credits Amidst COVID-19
The worldwide COVID-19 pandemic in 2020 and 2021 caused pain and suffering in people’s lives and reaped havoc on businesses, large and small.
If you were self-employed, a 1099 subcontractor, or a family-owned small business during those years and your income dried up and your business was economically devastated, you may qualify for up to $32,220 through the Self-Employed Tax Credit (SETC).
The SETC is a specialized tax credit designed to provide support to self-employed individuals during the COVID-19 pandemic. It acknowledges the unique challenges faced by those who work for themselves, especially during times of illness, caregiving responsibilities, quarantine, and related circumstances. This credit can be a valuable resource for eligible individuals to help bridge financial gaps caused by unforeseen disruptions.
SETC is a program of Gig Worker Solutions that aims to make benefits more accessible to people who are outside the typical employer-employee relationship. Their mission is to empower self-employed workers by providing access to benefits that will help them thrive both personally and professionally. Gig Worker Solutions is committed to creating a better future for the self-employed workforce.
“Gig Workers Solutions are the ones who have put the resources behind streaming the process to go after the self-employment tax credit program,” said Lloyd Bruce, a broker for Gig Workers Solutions.
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Understanding the unique circumstances that self-employed individuals face, we’ve partnered with Anchor Accounting Service to ensure that you don’t miss out on this invaluable opportunity. Whether you’re a self-employed business owner, a 1099 subcontractor, or a family-centric small business, the SETC holds the potential to bridge the gap left by more traditional forms of support.
Key Eligibility Criteria
Self-Employed Status:
If you were self-employed in 2020 and/or 2021, you could potentially qualify for the SETC. This includes sole proprietors who run businesses with employees, 1099 subcontractors, and single-member LLCs. If you filed a “Schedule C” or a Partnership (1065) on your federal tax returns for 2020 and/ or 2021, you’re on the right track
COVID Impacts:
Whether you battled COVID, experienced COVID-like symptoms, needed to quarantine, underwent testing or cared for a family member affected by the virus, the SETC could be your financial relief. If the closure of your child’s school or daycare due to COVID restrictions forced you to stay home and impacted your work, we’re here to help.
Important Note:
Sub S or True S Corps/ C Corps are not eligible for the SETC. This unique tax credit is exclusively available to business owners who filed a” Schedule C” or a Partnership (1065) on their federal tax returns for 2020 and/or 2021.
Bruce added that a business owned by a husband and wife could qualify for increased funds.
“If the husband and wife were self-employed during this time, they potentially could quality for up to $64,000,” he said.
When you’re ready to apply, you’ll need a few tax documents, the date(s) that qualify you, and two completed documents from Gig Workers. Details about all of these documents can be found on your Gig Workers portal. Visit our site to apply or contact Lloyd Bruce at 314.276.3321 for more information.
Contact Lloyd Bruce, Consultant to learn more or schedule an appointment.
314-276-3321 • LBruce@originalconsult.com
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Keywords: tax credits, self-employed, pandemic relief, business owners, financial aid
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