Claim Your 2020 COVID Sick and Family Leave Credits Today
Written by Coach Janelle CPA on June 28, 2023
You may have overlooked potential COVID-19 sick and family leave tax credits on your 2020 tax return. You might be eligible for up to $15,110 in tax credits, and the good news is that it’s not too late to claim them.
The IRS allows amended tax returns, so you can claim the credits today. Please be aware that you should act soon because the timeline for submitting amended returns is limited.
To realize the $15,110 in maximum tax credits, you must meet the following requirements:
1. Adequate 2020 income ($143,866 of net income if you’re self-employed or equivalent W-2 income if you’re an employee of your corporation).
2. An inability to work in 2020 due to COVID-19.
3. A son or daughter who is either under age 18 or incapable of self-care because of a mental or physical disability.
The law divides the credits into two categories:
1. Up to $5,110 for individuals unable to work due to COVID-19-related reasons
2. Up to $10,000 for individuals who cared for a child due to COVID-19
If you are self-employed and qualify, you can claim the credits by amending your 2020 tax return and filing a completed 2020 Form 7202 (Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals) along with IRS Form 1040-X.
For corporation owners, if your corporation paid you while you were not working due to COVID-19, your corporation may qualify for sick or family leave tax credits. If your corporation has not claimed the credits in its 2020 returns, it can amend its payroll tax returns using Form 941-X. Please note that there’s a three-year statute of limitations for correcting payroll tax overpayments on Form 941-X; for 2020, that means it expires on April 15, 2024.
Also, please be aware that you cannot receive double benefits. If you received assistance through the Paycheck Protection Program (PPP), the ERC, or similar programs, you cannot claim the same self-employed income or employee wages for the COVID-19 sick and family leave credits.
Are you tired of the annual tax scramble, uncertain about how to optimize your tax strategy? Look no further, because Coach Janelle CPA is here to revolutionize your approach to taxes with her exceptional Tax Strategy services!
Unlock the Power of Tax Efficiency:
1. Harness Coach Janelle's profound expertise as a Certified Public Accountant (CPA) and her mastery of tax laws to maximize your savings and minimize your tax liabilities.
2. Gain access to innovative tax planning techniques that will empower your business to thrive in the ever-changing tax landscape.
3. Stay compliant with tax regulations while uncovering legitimate deductions and credits that can significantly impact your bottom line.
4. Achieve peace of mind, knowing that your tax strategy is in the hands of a trusted professional, allowing you to focus on what truly matters – growing your business.
What Coach Janelle's Tax Strategy Services Offer:
1. Comprehensive Tax Analysis: Let Coach Janelle dive deep into your financials, identifying opportunities for tax optimization and implementing strategies that align with your business goals.
2. Strategic Tax Planning: Collaborate with Coach Janelle to develop a personalized tax plan, ensuring you leverage all available deductions, credits, and exemptions to your advantage.
3. Compliance & Audit Support: Rest easy knowing your business is in full compliance with tax regulations, while having the guidance and support you need during audits or inquiries.
4. Entity Structure Optimization: Maximize tax efficiency by selecting the right entity structure for your business, reducing your overall tax burden and increasing your financial flexibility.
5. Tax Law Education: Stay informed and empowered with up-to-date knowledge of tax laws, helping you make informed decisions and optimize your tax strategy.
6.Tax Return Preparation: Rely on Coach Janelle's meticulous attention to detail as she prepares your tax returns accurately and efficiently.
Don't wait another moment to optimize your tax strategy and keep more of your hard-earned money where it belongs – in your business. Contact Coach Janelle CPA today to schedule a consultation and discover how her Tax Strategy services can transform your financial future. Take control of your taxes and unlock new levels of prosperity!
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