IRS tax form 7202

[tscott1205]

My self employed client wants to claim the credit for sick leave for certain self employed individuals since his business was shut down for 1 month due to him contracting covid. I manually prepared the form and it seems he gets a  tax credit of 5,110. However the form does not seem to be supported by proseries. When I try to override the field the program says the return can not be efiled.

Can anyone help me? 

[Just-Lisa-Now-]

CTRL+F 7202 it lands on the 7202-S, you'll need to scroll down to the 7202-T   

Works fine for me, assuming there is SE profit in either 2020 or 2019, and its not a flat $5110, its based on the net income on Sch C.

It doesnt seem to require attaching as a PDF anymore, but Ive still been doing it, since thats how it worked several weeks ago.

[tscott1205]

Thank you...I don't know why the "where do I enter" feature did not take me to this form. It has always before. Also going directly to sch 3 did not take me there either.

[tscott1205]

My client was shut down the last week in December plus the entire month of January 2021. The instructions say to list only the days in 2020. I wonder if the credit will be available next year for the days in January 2021?

[Just-Lisa-Now-]

nobody knows

[rbynaker]

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@tscott1205 wrote:

My client was shut down the last week in December plus the entire month of January 2021. The instructions say to list only the days in 2020. I wonder if the credit will be available next year for the days in January 2021?

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The credits have been extended to 9/30/21.  But you still only get 10 COVID days total.  So if you used all 10 days in 2020, there's nothing left for 2021.

Edit:  See TaxGuyBill's update.

[TaxGuyBill]

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@tscott1205 wrote:

My client was shut down the last week in December plus the entire month of January 2021. The instructions say to list only the days in 2020. I wonder if the credit will be available next year for the days in January 2021?

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If I remember correctly, January 1st through March 31st still used the same 10 days.  In other words, nothing more can be claimed for January.  But a NEW 10 days is valid from April 1st through September 30th (?).

But if your client is not eligible for the Sick Pay, they may have been eligible for Unemployment Compensation.

[rbynaker]

Ugh.  At some point I need to learn the new 2021 stuff.  I've gotten incomplete bits and pieces of stuff but mostly I've been focusing on surviving 2020 tax season.

When they extended it from 12/31/20 to 3/31/21 they kept the term "all preceding calendar quarters."

When they extended it from 3/31/21 to 9/30/21 it looks more like a reboot with the terminology updated to say "preceding calendar quarters in such calendar year (other than the first quarter of calendar year 2021)."  So starting 4/1/21 you're allowed to get COVID again (and get paid).

[tscott1205]

What reason do you think he would not be eligible for the sick pay?

[rbynaker]

It all rolls back to the Emergency Paid Sick Leave Act (part of FFCRA).  So you have to be "unable to work":

SEC. 5102. PAID SICK TIME REQUIREMENT.
(a) IN GENERAL.—An employer shall provide to each employee
employed by the employer paid sick time to the extent that the
employee is unable to work (or telework) due to a need for leave
because:
(1) The employee is subject to a Federal, State, or local
quarantine or isolation order related to COVID–19.
(2) The employee has been advised by a health care pro-
vider to self-quarantine due to concerns related to COVID–
19.
(3) The employee is experiencing symptoms of COVID–
19 and seeking a medical diagnosis.