Small Business Owners and Self Employed
Self-employment tax credits can be a valuable resource for entrepreneurs and freelancers. They can help offset the financial burden of paying taxes on self-employment income. This opportunity has come to my attention, through several colleagues and clients who have benefited from this advice, so I want to share in hopes it can be of benefit to others.
Many CPA's are unaware this opportunity exists. Many are unconcerned with anything more than just filing your taxes. Where some maybe be more thorough, filing amendments to previous year tax returns are less beneficial to their bottom line. Fortunately there are others who thrive in this area. I also want to make you are aware that this is not affiliate marketing and that I do not receive any commissions from advisors mention in this article. However, If you do need assistance with financial planning, college planning, retirement planning, annuities, 401k rollovers or life insurance, that is where I can be of best service to you and I will be compensated for that service.
In this article, I want to cover topics such as:
- Overview of Self-Employment Tax Credits: 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. https://www.irs.gov/newsroom/tax-credits-for-paid-leave-under-the-american-rescue-plan-act-of-2021-specific-provisions-related-to-self-employed-individuals
- Available Credits: 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. You may qualify for up to $32,200!
THE DEADLINE TO FILE IS APPROACHING. DON'T MISS THIS OPPORTUNITY! 5/17/2024 for 2020 Amendment. 4/15/2025 for 2021 Amendment.
- Eligibility Criteria: Self-Employed Status. If you were self-employed in 2020 and/or 2021. Including :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. To qualify, you need a POSITIVE income in section 6 of Schedule SE on your 1040 tax returns.
- Maximizing SETC: Up to $511 per day for up to 10 days. (Covid Related) Family Leave Tax Credit. Up to $200 per day for up to 10 days (Caretaker). Up to $200 per day for up to 50 days in 2020 and 60 days in 2021' (Child). Time Frame: April 1st 2020 to September 30th 2021.
- 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
- Seeking Professional Advice: I would encourage readers to seek advice from your tax professionals first in order to save on fees charged by companies like TopNotch advisors https://www.topnotchsetc.com who charge a standard $1700.00. Seeking the assistance of professionals ensures you taking full advantage of all available tax credits while staying compliant with tax laws and paying the lowest amount for the service. Remember the old adage, "Cheap is not good and good is not cheap."
Providing valuable information and practical tips in this article, illustrates my desire to increase financial awareness in our community. Self-employment tax credits and potentially save you money on your prior year taxes. If you would like to discuss other opportunities to protect and grow your money schedule an appointment here: https://agents.worldfinancialgroup.com/John-Kunz-98TVG
