The FFCRA provides for sick leave and family leave refundable credits against the self-employment tax. The sick leave credit provision for self-employed individuals allows an income tax credit for a qualified sick leave equivalent amount. The qualified sick leave equivalent amount equals the number of days (up to 10) that the self-employed individual can’t perform services and would have been entitled to receive paid sick leave under the EPSLA if he were an employee, multiplied by the lesser of two amounts, based on the circumstance of the leave. The credit is limited to the lesser of 100% of average daily self-employment income, or $511 per day if the self-employed individual is (1) subject to a federal, state, or local quarantine or isolation order related to COVID-19; (2) advised by a health care provider to self-quarantine due to coronavirus concerns; or (3) experiencing coronavirus symptoms and seeking a medical diagnosis. The credit is limited to the lesser of 67% of average daily self-employment income, or $200 per day for a self-employed individual who is caring for another individual described in item 1 or 2, caring for a son or daughter whose school or place of care is closed or child care provider is unavailable, or because the self-employed individual is experiencing a “substantially similar condition” specified by the government. The family leave credit provision for self-employed individuals allows an income tax credit for a qualified family leave equivalent amount. The qualified family leave equivalent amount equals the number of days (up to 50) that the self-employed individual can’t perform services and would have been entitled to receive paid leave under the EFMLEA if he were an employee, multiplied by the lesser of 67% of average daily self-employment income, or $200. The credits for self-employed individuals apply only to days occurring during the period beginning on April 1, 2020.
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