Author Topic: IRS Tax Credits Available for Business (FFCRA and ERTC)  (Read 3030 times)

Offline dovy2

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #20 on: December 12, 2021, 08:28:54 PM »
Anyone who file amended refunds see anything yet?

Offline gozalim

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #21 on: January 25, 2022, 05:26:51 AM »
For 2021 tax filing
someone with w2 income as well as some 1099:
If some ability to work that 'side job' was affected by the relevant reasons (sick/quarantine/childcare etc.) can file FFRCA paid 'sick leave' against the SE taxes being charged on that 1099?
Does it require equivalent amount of sick leave taken on W2 ?

What documentation of leave is required for self employed filing?
« Last Edit: January 25, 2022, 05:31:01 AM by gozalim »

Offline gozalim

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #22 on: January 27, 2022, 02:00:54 PM »
For 2021 tax filing
someone with w2 income as well as some 1099:
If some ability to work that 'side job' was affected by the relevant reasons (sick/quarantine/childcare etc.) can file FFRCA paid 'sick leave' against the SE taxes being charged on that 1099?
Does it require equivalent amount of sick leave taken on W2 ?

What documentation of leave is required for self employed filing?
should this question be addressed to @cgr ?

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #23 on: January 27, 2022, 03:38:11 PM »
For 2021 tax filing
someone with w2 income as well as some 1099:
If some ability to work that 'side job' was affected by the relevant reasons (sick/quarantine/childcare etc.) can file FFRCA paid 'sick leave' against the SE taxes being charged on that 1099?
Yes

Does it require equivalent amount of sick leave taken on W2 ?
No, although if FFCRA is taken across multiple jobs and/or W2 + 1099, then the individual is capped at the $12k maximum across all source of income/employers, and not $12k per employer/income source.

What documentation of leave is required for self employed filing?
No official docs, but if the reason is for an order of quarantine, document the name of the healthcare provider. If the reason is for childcare, document the name of the child and the name of the school. Keep these for a period of 4 years in case of audit.

(thanks for bringing the question to my attention- I saw it a few days back and was going to check up on some details, and it slipped my mind).

Offline gozalim

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #24 on: January 27, 2022, 03:44:41 PM »
@ExGingi this deduction might resolve some of your questions

Offline gozalim

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #25 on: January 27, 2022, 03:49:49 PM »
No, although if FFCRA is taken across multiple jobs and/or W2 + 1099, then the individual is capped at the $12k maximum across all source of income/employers, and not $12k per employer/income source.
(thanks for bringing the question to my attention- I saw it a few days back and was going to check up on some details, and it slipped my mind).
meaning, can I take off a week from my side job (for childcare or whatever) on a week that my paystub was not deducted?

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #26 on: January 27, 2022, 04:12:10 PM »
meaning, can I take off a week from my side job (for childcare or whatever) on a week that my paystub was not deducted?
While it's not specifically addressed by the IRS the answer for 2021 is definitely yes since FFCRA is optional for employers in 2021. (And regardless it's not specifically precluded).

Offline Fish Tank

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #27 on: February 16, 2022, 02:20:40 PM »
I had an employee for the first quarter of 2020. Am I eligible for the ERTC credit?



Offline Fish Tank

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #28 on: February 16, 2022, 02:21:08 PM »
You cannot claim ERTC if you received a PPP loan.
Is this still accurate?

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #29 on: February 16, 2022, 02:25:22 PM »
Is this still accurate?
No, although you can't use the same dollars for ERTC and PPP forgiveness

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #30 on: February 16, 2022, 02:27:46 PM »
I had an employee for the first quarter of 2020. Am I eligible for the ERTC credit?
ERTC started in mid-March so even if you qualify (lots of eligibility criteria) it would be for 2 weeks at most.

Offline Fish Tank

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #31 on: February 16, 2022, 02:31:04 PM »
No, although you can't use the same dollars for ERTC and PPP forgiveness
ERTC started in mid-March so even if you qualify (lots of eligibility criteria) it would be for 2 weeks at most.
Thank you !

Offline dovy2

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #32 on: February 17, 2022, 02:54:55 PM »
@cgr
I understand they suspended the program for q4 2021.
regarding the prior-quarter comparison thingy,
Am I able to calculate the 20% loss using Q4 2021 income against Q3 of 2019?
(otherwise I dont have any 20% loss in any other quarter)

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #33 on: February 17, 2022, 03:10:24 PM »
@cgr
I understand they suspended the program for q4 2021.
regarding the prior-quarter comparison thingy,
Am I able to calculate the 20% loss using Q4 2021 income against Q3 of 2019?
(otherwise I dont have any 20% loss in any other quarter)
The prior quarter comparison only works for the quarter you're looking to qualify for, and it still requires the same quarters to be compared. For example: you're looking to qualify in Q3 2021. You can compare Q3 2021 to Q3 2019 (same quarter comparison) or Q2 2021 to Q2 2019 (prior quarter comparison)- you cannot compare Q3 2021 to Q2 2019 or vice versa.
Bottom line: if you qualify for ERTC you will always qualify for a minimum of 2 quarters.

Offline TBD

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #34 on: June 23, 2022, 08:54:39 PM »
Is a S corp owner and spouse eligible for FFCRA credits for their w-2 wages or there is the same limits as ERTC?

Offline cgr

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Re: IRS Tax Credits Available for Business (FFCRA and ERTC)
« Reply #35 on: June 24, 2022, 03:04:29 AM »
Is a S corp owner and spouse eligible for FFCRA credits for their w-2 wages or there is the same limits as ERTC?
FFCRA is available to anyone paying self-employment tax (so Sch C, 1065 active income, and wages), including owners and family. It can't be taken for the same wages as PPP or ERC.