On Wednesday, March 18, President Trump signed into law, legislation to provide additional relief for individuals impacted by Coronavirus (COVID-19).
The COVID-19 legislation, called the Families First Coronavirus Response Act or H.R. 6201, includes relief for individuals, self-employed and businesses. TurboTax has you covered with the most up to date information regarding new legislation and tax filing changes and announcements in response to COVID-19 (Get the latest info on the 2019 tax filing deadline here). And, if you still have questions, our team of credentialed TurboTax Live CPAs and EAs are available on demand to help you out.
So what does the Families First Coronavirus Response Act mean to you and your family?
Relief for Individual Taxpayers
Eligible employees impacted by Coronavirus (COVID-19) may receive paid sick and emergency sick leave.
- Emergency Sick Leave. If you are an employee and were required to be quarantined, took care of a family member who was required to be quarantined, or had to care for your child due to school or daycare closures you may be able to take 12 weeks job-protected leave under FMLA.
- Paid Sick Leave. If you are an employee and you were quarantined or seeking care for COVID-19, you may receive two weeks paid sick leave at full pay and two-thirds pay to care for a family member or child.
Relief for Self-Employed and Small Businesses
The Families First Coronavirus Response First Act provides relief in the form of refundable tax credits for sick leave and family leave for both eligible self-employed and small business owners.
- Self-Employed Tax Credit for Sick Leave. If you are self-employed, you may be eligible for a refundable tax credit equivalent to a qualified sick leave amount. Qualified sick leave is based on your average daily self-employment income.
- Self-Employed Tax Credit for Family Leave. If you are self-employed you may be eligible for a refundable tax credit equal to 100 percent of a qualified family leave equivalent amount for eligible self-employed individuals.
- Small Business Tax Credit for Paid Sick Leave. If you are a small business owner and paid sick leave wages to your employees you may be eligible for a refundable tax credit equal to 100 percent of qualified sick leave paid.
- Small Business Tax Credit for Paid Family Leave. If you are a small business owner and paid qualified family leave wages to employees, you may be eligible for a refundable tax credit equal to 100 percent of qualified family leave wages paid.
If you’re looking for the latest information and updates on the CARES Act and what it means for you — including information on the 2020 stimulus package and stimulus checks — check out our blog post here.
Be sure to continue to check back here for the most up to date news and information.