Are you a self-employed small business owner whose ability to run your business was negatively impacted by the COVID pandemic?
Is that even a question?
Did you know that the federal government has a tax credit waiting for you? It’s called the Self-Employed Tax Credit (SETC) under the American Rescue Plan Act.
The SETC is a specialized tax credit designed to support self-employed individuals who faced unique challenges during the COVID-19 pandemic. This credit can be a valuable resource to help bridge financial gaps caused by unforeseen disruptions, such as illness, caregiving responsibilities, quarantine, and related circumstances.
Who Qualifies for the SETC?
Almost everyone with Schedule C income qualifies for this credit. If you were self-employed in 2020 and/or 2021, you could potentially qualify for the SETC. The SETC acknowledges the impact of COVID-19 on self-employed individuals and provides a means to recoup some of the losses incurred. This includes:
· Sole proprietors who run businesses with employees
· 1099 subcontractors
· Single-member LLCs
If you filed a “Schedule C” on your federal tax returns for 2020 and/or 2021, you’re on the right track. The eligibility criteria are broad to ensure that many self-employed individuals who faced disruptions due to COVID-19 can benefit.
COVID-19 Impacts and Eligibility
During the pandemic, millions of people grappled with various COVID-related challenges, including:
· Illness or COVID-like symptoms
· Quarantine requirements
· Testing for COVID-19
· Caregiving responsibilities for a family member affected by the virus
· Financial strain due to business interruptions
If any of these situations affected your ability to work, the SETC was designed to be your safety net.
Financial Relief Through SETC
You may be eligible for up to $32,220 in tax credits for 2020 and 2021. This substantial amount can significantly alleviate the financial burden caused by the pandemic.
To determine if you qualify, consider the following scenarios:
· Illness or Symptoms: If you battled COVID-19 or experienced COVID-like symptoms that impacted your ability to work.
· Quarantine: If you were required to quarantine, whether due to exposure or as a precaution, and this affected your work.
· Testing: If you underwent testing for COVID-19 and had to take time off work.
· Caregiving: If you had to care for a family member affected by COVID-19, impacting your ability to maintain your business operations.
· Childcare: If the closure of your child’s school or daycare due to COVID-19 restrictions forced you to stay home and impacted your work, you might qualify for this credit.
How to Claim the SETC
To claim the SETC, you need to ensure that you have all relevant documentation to support your claim. This includes records of your self-employment income (Schedule C), proof of COVID-related impacts on your work, and any other supporting documents. Here’s a quick guide to get you started:
1. Gather Documentation: Collect all necessary records, including your Schedule C forms, documentation of COVID-related impacts (e.g., quarantine notices, test results), and any other relevant evidence.
2. Consult a Tax Professional: Consider consulting with a tax professional to ensure you accurately claim the credit and maximize your eligibility.
3. File Your Claim: File your amended tax returns for 2020 and 2021 if you have not already claimed the credit. Make sure to include all necessary documentation to support your claim. Use this link to get started: http://getmytaxcredit.biz/
Now Is the Time to Act
If you haven’t yet claimed this credit, now is the time to act. This important tax credit expires in April 2025.
Ensure you gather all required documentation and seek professional advice if needed to take full advantage of this opportunity.
Don’t miss out on the financial relief you deserve. Anchor Wealth can help you navigate the process and ensure you receive the tax credit you’re entitled to. For more information and assistance, click http://getmytaxcredit.biz/
Claim your SETC today and let anchor Wealth help you give your business the boost it needs to recover and thrive in the post-pandemic economy.
