What Is The FFCRA Tax Credit — Families First Coronavirus Response Act?

The Families First Coronavirus Response Act (FFCRA) was enacted in March 2020 to assist companies in providing paid sick leave and unemployment benefits related to COVID-19. Initially, the FFCRA targeted employers with W-2 employees to help them navigate the economic challenges brought on by the pandemic.

In December 2020, Congress passed 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. Thanks to this expansion, self-employed individuals, freelancers, independent contractors, and gig workers are now eligible for tax credits that reimburse them for the income lost due to COVID, extending the support beyond traditional employee structures.

In contrast to the Paycheck Protection Program (PPP), the FFCRA operates as a retroactive tax credit rather than a loan. It applies to your 2020 or 2021 income taxes and serves to either decrease your existing IRS debt or be disbursed directly to you through a check or ACH deposit, contingent on your tax status. FFCRA credits received directly are unrestricted in use and do not require repayment.

Who Qualifies For The FFCRA Tax Credit?

To be eligible for FFCRA benefits, you must satisfy the following criteria:

Identify as a self-employed individual, which may include, but is not limited to:

  1. Rideshare, food, or product delivery drivers

    • Gig workers

    • Individuals earning income through e-commerce platforms such as eBay, Etsy, Amazon, etc.

    • Freelance business owners providing services to other companies without direct employment

    • Sole proprietors

    • Independent contractors (1099 workers)

  1. Have submitted a Schedule SE of IRS Tax Form 1040 in 2020 and/or 2021, demonstrating a positive net income, and have paid self-employment tax on your earnings.

  2. Have experienced a loss of work due to Covid-related issues.

Regrettably, if you were an employee who received a W2 form in 2020 or 2021, it's possible that your employer has already utilized the FFCRA to address your sick leave, rendering you ineligible to seek FFCRA credits independently.

Who Qualifies For The FFCRA Tax Credit?

The FFCRA enables a 1099 contractor or self-employed individual to be eligible for paid sick time if they were unable to work or telecommute due to COVID-19. Several qualifying reasons include, but are not restricted to:

  1. In adherence to a federal, state, or local quarantine or isolation directive;

  2. Advised by a healthcare provider to undergo self-quarantine;

  3. Exhibiting symptoms of Coronavirus and undergoing a medical diagnosis;

  4. Providing care for a child or another individual subjected to a government-issued or self-quarantine directive;

  1. Providing care for a child when their school or daycare is closed or unavailable.

  2. Getting a COVID-19 vaccination*.

  3. Recovering from illness associated with the COVID-19 vaccine*.

  4. Seeking or awaiting the results of a COVID-19 test*.

It’s easy!

How do I apply for the FFCRA Credit?

Step 1:
VISIT FFCRA Credit.
(You’re already here, good job!)

Step 2:
Confirm your eligibility.
Utilize our pre-qualification survey to determine eligibility and estimate your potential tax credit.

Step 3:
Get your previous tax statements together and start the application.
We require some information from you regarding the dates for which you are applying and the income earned in both 2020 and 2021.

Step 4:
Complete the signing of a few documents, upload your identification information, and choose your preferred payment options.

Step 5:
Submit your application directly to the IRS via FFCRA Credit.
Let our efficient process handle the hard work for you—just sit back and unwind!