Understanding Sick Leave Credit - eligibility and calculations (for self employed)

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simas
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Joined: Wed Apr 04, 2007 5:50 pm

Understanding Sick Leave Credit - eligibility and calculations (for self employed)

Post by simas »

Oh glorious smart tax wise ones, could you help me properly read and understand the Sick Leave Credit FAQ and instructions?

https://www.irs.gov/newsroom/special-is ... ndividuals

1. What is a 'day' that is being counted within the qualified period (defined as "beginning on April 1, 2020, and ending on March 31, 2021.")?

- calendar day? weekday (excluding weekends)? workday (i.e. weekday excluding weekends and holidays like Memorial Day) ?
or really any day where the following applies (below) ?

"For an eligible self-employed individual who is unable to work or telework 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;
Is 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
Is experiencing any other substantially similar condition specified by the Secretary of Health and Human Services in consultation with the Secretary of the Treasury and the Secretary of Labor,
"

Our daycare was completely closed in March, April, and 3 weeks of May 2020 with full shutdown , I want to make sure if I will go for that credit I count this correctly..

2. Understanding eligibility properly. In my case, I have part time W-2 employment and my own consulting business (self employment). I read the guidance for self-employed individuals and am still confused. I am unincorporated, so I did not issue myself any COVID forms, did not pay or receive any qualified family leave money , I just did not consult (reduction/loss of revenue) since i had a full time child on my hands then. What documents am I expected to keep for this? statement from my daycare stating they were closed (which they were)? statement from me with details below? statement to whom exactly?

instructions here (https://www.irs.gov/newsroom/how-should ... eave-wages) mention

"In the case of a leave request based on a school closing or child care provider unavailability, the statement from the employee should include the name and age of the child (or children) to be cared for, the name of the school (or summer camp, summer enrichment program, or other summer program) that has closed or place of care that is unavailable, and a representation that no other person will be providing care for the child during the period for which the employee is receiving family medical leave and, with respect to the employee’s inability to work or telework because of a need to provide care for a child older than fourteen during daylight hours, a statement that special circumstances exist requiring the employee to provide care."
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