Section 9643 of the Act adds a credit for eligible self-employed individuals (Realtors, Brokers, and Real Estate Professionals) equal to 100 percent of the qualified family leave equivalent amount with respect to the individual. The term ”eligible self-employed individual” means an individual who (1) regularly carries on any trade or business within the meaning of Code Sec. 1402, and (2) would be entitled to receive paid leave during the tax year pursuant to the Emergency Family and Medical Leave Expansion Act if (i) the individual were an employee of an employer (other than himself or herself), (ii) Section 102(a)(1)(F) of the Family and Medical Leave Act of 1993 applied after March 31, 2021.
Qualified Family Leave Equivalent: The term ”qualified family leave equivalent amount” means, with respect to any eligible self-employed individual (Realtors, Brokers, and Real Estate Professionals), an amount equal to the product of (1) the number of days (not to exceed 60) during the taxable year that the individual is unable to perform services in any trade or business referred to in Code Sec. 1402 for a reason with respect to which such individual would be entitled to receive paid leave, multiplied by (2) the lesser of (i) 67 percent of the average daily self-employment income of the individual for the tax year, or (ii) $200.
Average Daily Self-Employment Income: The term ”average daily self-employment income” means an amount equal to (1) the net earnings from self-employment income of the individual for the taxable year, divided by (2) 260. An individual may elect to substitute “the prior tax year” for “the tax year.” The taxpayer can elect to not take a certain day or days into account. This credit is treated as a refundable credit.
Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email Don.Fitch@CPA.com if you have any questions or would like additional information.
DON FITCH, CPA
74478 Highway 111 #3
Palm Desert, CA 92260
Toll Free: (877)CPA-Help or (877)272-4357
P.S. My firm is based upon referrals. Please feel free to refer my firm to anyone you know that is looking for a new CPA and/or tax preparer. Thank you in advance.
(Updated 03/13/2021 08:05)