I have a client who wants to amend their 2020-2021 tax returns for a self employment tax credit they heard about? I am looking for advisement on this?

Forum|Forum|2 years ago
April 14, 2024
2 replies
16 views

No text available

ProSeries Professional

This topic has been closed for replies.

Just-Lisa-Now-

Intuit Community Champion

What kind of advisement?

Were your clients unable to work due to Covid during the dates that the credit is available for?

Did they bring you any documentation of this or did they just see a tiktok video and want to get free money?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

C

chiodoincAuthor

Level 5

They claim they can provide the paperwork but before I agreed to anything I wanted to get some

advisement on the process or forms needed to be filed on the amended return

Just-Lisa-Now-

Intuit Community Champion

its the Form 7202

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

During the covid disaster, there was a "parity" provision in the TRA and the ARPA (acts of Congress) that helped Self-employed be treated the same as employees for purposes of FMLA and sick pay. The IRS is the best reference. You need to confirm the date ranges, the reasons, if the taxpayer has any overlapping claims, any supporting documentation, and also, the W2s issued in this period showed if the person already got this benefit from an employer (you can't double dip).

https://www.irs.gov/newsroom/paid-sick-and-family-leave-credit-2020-vs-2021-comparison-chart

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

Don't yell at us; we're volunteers

qbteachmt

Level 15

Of course, there also is this consideration:

"Based on the statute of limitation, the opportunity to amend for the purpose of seeking the refundable credit on the 2020 tax return for sick or family leave that occurred between April 1, 2020, and Dec. 31, 2020, expires April 15, 2024, for returns filed by the due date."

Don't yell at us; we're volunteers

Sign up

Login with SSO

Let's get you signed in

Login with SSO