Many self-employed Americans faced financial hardship during the COVID-19 pandemic due to shutdowns, quarantines, illness, and lost income. Congress responded with the Self-Employed Tax Credit (SETC), which consists of Sick Leave and Family Leave Tax Credits, offering relief of up to $32,220 to eligible workers for the 2021 tax year.
Created in 2022 under the Families First Coronavirus Response Act (FFCRA), the SETC offers independent contractors and gig workers valuable tax credits to offset financial hardships experienced during the 2021 tax year. Over 30 million Americans qualify, but many are unaware of the program.
The SETC provides relief for those whose ability to work was directly affected by COVID-19, including missed workdays and lost income. This could apply to workers who battled the virus itself, underwent COVID-19 testing, were quarantined or isolated, cared for family members affected by the virus, or experienced childcare disruptions due to COVID-19 closures.
Through SETC Pros, a partner of Solo's, self-employed workers have an opportunity to apply for the SETC for the tax year 2021 and potentially receive a non-taxable refund of up to $32,220 issued by the IRS.
To qualify for the SETC, you must meet a few key requirements:
Self-Employed Status: Gig workers, 1099 contractors, single-member LLCs, sole proprietors (with or without employees), including those who work remotely may all be eligible.
COVID-19 Impact: You must have been directly impacted by COVID-19 and experienced work loss due to illness, testing, caregiving, or mandated shutdowns. Examples include quarantine from government-mandated lockdowns or isolation orders related to COVID-19 exposure; caring for someone in quarantine or isolation; caring for a child impacted by school closures; experiencing COVID-19 symptoms requiring medical diagnosis; time missed for COVID-19 vaccination appointments or experiencing side effects; and caring for children due to school closures or unavailable childcare providers due to COVID-19.
Solo has partnered with SETC Pros, a team of tax professionals dedicated to helping self-employed individuals navigate the complexities of claiming this historic tax credit before it expires. SETC Pros offers a simple application process that includes hassle-free secure paperless applications taking under 10 minutes using proprietary IRS-compliant software that pre-fills necessary documents with accuracy. There is also a zero-risk guarantee where you only pay after receiving your refund. Additionally, if you owe back taxes, SETC Pros will work with you at a reduced rate.
To apply for this potential tax refund from the IRS through SETC Pros:
Visit their website and click "Start Application."
Answer a few simple questions and verify your identity.
Track your refund status through your secure customer portal.
Solo is proud to partner with SETC Pros in bringing this opportunity to independent workers. The partnership aims at helping them maximize their financial benefits amid unique challenges faced during these times.
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