COVID Tax Relief (Finally) For the Self-Employed
Sick Leave Tax Credits
Available to 1099s
Available to 1099s
Sick Leave Tax Credits Available to 1099s
COVID Tax Relief (Finally) For the Self-Employed
Sick Leave Tax Credits
Available to 1099s
Available to 1099s
Sick Leave Tax Credits Available to 1099s
Get the full amount you are entitled to.
Now that you’re here, there are only 3 easy steps between you and potentially receiving significant amounts of cash back from the IRS.
Now that you’re here, there are only 3 easy steps between you and potentially receiving significant amounts of cash back from the IRS.
Either click here to get started or keep scrolling to learn more.
This is a TAX CREDIT, not a loan! Receiving this credit will either reduce the current amount you owe to the IRS or be sent to you directly in the form of an ACH or check. Any FFCRA credits you receive are yours to use and spend however you see fit. You NEVER have to pay this back! What are you waiting for?
To qualify for the Self-Employed Sick Leave Tax Credit, you must meet three factors:
1. Identify as a Self-employed individual. A few examples, but not limited to, include:
- Rideshare, food, or product delivery drivers
- Gig workers
- Earning an income via e-commerce sites like eBay, Etsy, Amazon, etc.
- Running a freelance business where you provide services to another company but are not directly employed by them
- Sole proprietors
- Independent contractors (1099 workers)
2. Have filed a Schedule SE of IRS Tax form 1040 in 2020 and/or 2021 with a positive net income and paid self-employment tax on your earnings.
3. Have missed work due to Covid-related issues.
NOTE: Unfortunately, if you were an employee who received a W2 form in 2020 or 2021, your employer might have already claimed the FFCRA to cover your sick leave, making you ineligible to apply through Valiant Capital.
Who Qualifies for the Self-Employed Sick Leave Tax Credit?
The FFCRA allows for a 1099 contractor or self-employed individual to qualify for paid sick time if they were unable to work or telework because of COVID-19. A few qualifying reasons include, but are not limited to:
- Following a federal, state or local quarantine or isolation order
- Advised by a healthcare provider to self-quarantine
- Experienced Coronavirus symptoms and were seeking a medical diagnosis
- Caring for a child or other individual, who was subject to an government-issued or self-quarantine restriction
- Caring for a child whose school or daycare was closed or unavailable
- Obtaining a COVID-19 vaccination*
- Recovering from illness related to the COVID-19 vaccine*
- Seeking or waiting for the results from a COVID-19 test*
NOTE: reasons with * only apply if you’re seeking credit for dates between April 1, 2021 – September 30, 2021.
How Do I Apply for the Tax Credit?
Step 1. Visit Valiant Capital.
(You’re already here, good job!)
Step 2. Confirm your eligibility.
Use our pre-qualification survey to see if you qualify and to calculate your estimated tax credit.
Step 3. Start your application. For the application, you will need:
- 2020 and 2021 tax returns
- Number of work days missed due to COVID in 2020 and 2021
- Review all terms and conditions
- Review payment options available to you at the time of filing
Step 4. Upload the required documents:
- 2019, 2020, 2021, and 2022 complete tax returns
- Government-issued ID
Step 5. Payment.
Valiant Capital charges a 18 – 25% processing fee (based on your payment option) along with a $250 non-refundable verification fee that will be deducted from your overall processing fee.
Step 6. Submit your application directly to the IRS via Valiant Capital.
Our streamlined process does the heavy lifting for you so just sit back and relax!
A little background and history on the FFCRA and how this opportunity came to be
In March 2020, the Families First Coronavirus Response Act (FFCRA) was enacted, aiming to support businesses in providing paid sick leave and unemployment benefits amid the COVID-19 pandemic. Initially targeting employers with W-2 employees, it aimed to alleviate the economic strain brought by the crisis.
In December 2020, the Congress approved the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which broadened the scope of the FFCRA to include not only employers but also self-employed individuals. This expansion brought relief to freelancers, independent contractors, and gig workers, making them eligible for tax credits reimbursing lost income due to COVID-19-related disruptions.
Our expert team will help you determine how much you are legally entitled to.
In order to receive all the money you’re entitled to from 2020 and 2021, we need to start processing your application soon! Let’s guarantee you receive all the money you’re entitled from the US Government to continue supporting our great nation and our economy!
Get Pre-Qualified Now
*Valiant Capital can only amend e-filed returns. If your 2020 and 2021 tax returns were paper filed, please reach out to your financial advisor for the next steps.
Frequently Asked Questions about Sick and Family Leave Credit (FFCRA and ARP) in Relation to PPP and ERTC:
The Sick and Family Leave Credit is a tax credit provided to employers who offer paid sick and family leave to their employees as mandated by the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan (ARP).
Eligible employers are those who provide qualified sick and family leave wages to employees who are unable to work due to specified reasons related to COVID-19.
Qualifying reasons include the employee’s inability to work due to their own COVID-19 illness, quarantine, caring for someone with COVID-19, or caring for a child whose school or place of care is closed due to COVID-19.
The Sick Leave Credit is calculated based on the employee’s regular rate of pay, up to specified limits, with different daily and aggregate limits for various qualifying reasons.
Yes, there are maximum limits on the credit, depending on the type of leave and the qualifying reason. Employers should be aware of these limits to accurately claim the credit.
The FFCRA’s mandatory leave requirements expired on March 31, 2021, but the ARP extended the tax credit for employers voluntarily providing paid sick and family leave through September 30, 2021.
Employers who receive PPP loans are not disqualified from claiming the Sick and Family Leave Credit. However, they cannot claim the credit for wages paid with forgiven PPP loan proceeds.
Employers can claim both the ERTC and the Sick and Family Leave Credit, but not for the same wages. Wages for which the ERTC is claimed cannot be used for calculating the Sick and Family Leave Credit.
Employers should maintain detailed records and documentation to show the appropriate allocation of wages for claiming both the Sick and Family Leave Credit and other COVID-19 relief programs like PPP and ERTC.
The Internal Revenue Service (IRS) provides guidance and resources to help employers understand the coordination of benefits when utilizing the Sick and Family Leave Credit alongside PPP and ERTC.
SBA Loan Application Process
Considering that SBA Loans are guaranteed by the Small Business Administration, it seems slightly easier to qualify for the loan. However, this may not be totally true as you are still dealing with banks.
Most traditional financial lending institutions still insist on reviewing your credit history, financial statement, and possible collateral for you to qualify for an SBA loan.
A comprehensive business plan and proof that you are capable of servicing the loan will be required of you to qualify.
However, with a five-step process, you are sure of getting an SBA loan, stress-free thereby shunting the entire process traditional financial institutions will put you through. These processes include:
Step 1 Applying for prequalification: When you contact our loan officers, you will be expected to fill out our application form. The loan officer guides you through the entire process as they issue you an interest letter and may possibly visit the business site if necessary. Once the term of the loan has been agreed upon, the loan immediately goes into underwriting.
Step 2 Underwriting/Credit Approval: The information from the application process is carefully analyzed during the underwriting and is approved by the loan committee if the necessary requirements are met. The term of the approval is issued in a commitment letter.
Step 3 Packaging: Upon approval and the signing of the commitment letter, the loan is either packaged as an SBA 7(a) loan, SBA 504, or USDA B&I loan. A closing checklist will be provided to you, all third-party reports ordered and titles opened.
Step 4 Closing: The file is ready to be closed once the lender has gotten the approval from the SBA or USDA and has also received the third-party reports. A closing date of your convenience will be chosen.
Step 5 Servicing: Once you have received the loan, it is important you begin to service it regularly as agreed in the contract terms.
SBA Loan Requirements
In order to qualify for SBA loan, certain documents will be required of you. They include:
- A valid Driver’s License
- Voided Business Check
- Bank Statements
- Business and Personal Tax Returns
- Business Debt Schedule