7202 Credit for SE Individuals - Somebody Stop Me?

Technical topics regarding tax preparation.
#1
Posts:
2611
Joined:
24-Jan-2019 2:16pm
Location:
North Shore, Oahu
Client is a nail shop owner and she is the solo worker in her small shop.

She is a SMLLC taxed as a DRE.

She was out for Covid for 10 days and had to cancel her customer appointments in the beginning of 2021.

Her business shows a net profit and she has an income tax (and SE tax) liability.

Of course I read through the IRS guidance and it looks to me like she can claim the credit. But I just wanted to double check as, of course, the guidance is a bit confusing in spots.

Are there any obvious hidden details or limiting factors that I overlooked?
 

#2
Posts:
821
Joined:
22-Apr-2014 12:02am
Location:
Lower 48
I can't think of a reason why she can't claim the credit assuming she didn't receive unemployment benefits (if any were available) for that period. She clearly couldn't work from home and I'm assuming she was under a 10-day order by the State to quarantine at home so she document her infirmity.

I believe the reset was on 3/31/21 so she would be eligible for another 10 days, starting April 1 through September 30 if she had any other Covid-related absences.

Did she have any time off due to medical reactions or issues related to the vaccines? Time off for children whose school was closed due to Covid?
 

#3
Nilodop  
Posts:
18751
Joined:
21-Apr-2014 9:28am
Location:
Pennsylvania
I se no issues. If you haven't already, take aquick run through these FAQs. https://www.irs.gov/newsroom/tax-credit ... ndividuals
 


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