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Self employed sick leave credits

sonadora-j
Level 2

Can anyone guide me towards what type of documentation I will be required to retain for these credits. I have searched far and wide and can’t seem to find and guidance. I know I will need to see covid test or something from school or work but I’m curious as to who’s on the hook here. I don’t wanna be caught unprepared since these are some hefty refundable credits. 

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16 Replies 16
qbteachmt
Level 15

I don't understand this part: "I know I will need to see covid test or something from school or work"

You seem to be asking about due diligence for your clients? The IRS instructions for Sched SE are where you will fill in the info. SE doesn't come from "school or work."

This link includes Self-employed FAQ: https://www.irs.gov/newsroom/special-issues-for-employees

 

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"Level Up" is a gaming function, not a real life function.
sonadora-j
Level 2

Sorry if my post was a little confusing.

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TaxGuyBill
Level 14

Create a questionnaire for the taxpayers to fill out and sign.

It should list the qualifying reasons, the qualifying dates, and ask how many days they could perform their self employment due to those reasons (see the Instructions for lines 1 & 2, and also line 25 of Form 7202).

https://www.irs.gov/pub/irs-dft/i7202--dft.pdf

sonadora-j
Level 2

Very good idea will probably add these questions to the questionnaire I already have for self employed returns.

Just-Lisa-Now-
Level 15
Level 15

and Intuit told us the other day that the 7202 wont be able to be Efiled per IRS, so tell your client to be prepared for a long paper filed wait time. 

This year is going to be a mess.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Terry53029
Level 11
Level 11

@Just-Lisa-Now- Are you saying we won't  be able to attach form 7202 as a pdf.

Just-Lisa-Now-
Level 15
Level 15
An Intuit employee was checking into it, but i never saw anything come back.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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TaxGuyBill
Level 14

@Just-Lisa-Now- wrote:

and Intuit told us the other day that the 7202 wont be able to be Efiled per IRS, so tell your client to be prepared for a long paper filed wait time. 

 


 

That makes no sense.  Where did Intuit say that?

That would mean EVERY self employed person that is affected would need to paper file?  Again, that doesn't make any sense why the IRS would do that.

TaxGuyBill
Level 14

Wow, I just saw your post from earlier this week.  I hope that Intuit is wrong.

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/so-the-form-7202-says-i...

IRonMaN
Level 15

It's back to my question in that post - is it not allowed to be e-filed or is that an Intuit interpretation of IRS gibberish?

I'm thinking you won't be able to attach it as a pdf because the form is going to be in the client file and that is going to block e-filing.  How are you going to get it to flow correctly without the form in the file?

I'm keeping this job. But I am selling surplus anvils on the side. If you are interested please call 867-5309
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Terry53029
Level 11
Level 11

@IRonMaN  If we cannot efile because of form 7202, I am just going to put the credit on schedule 3 line 12b with an override, and not fill out form 7202 in the program, but fill it out by hand and attach it as a pdf. If you look at the draft instructions, it says to attach to return. Will disable error check, and efile

qbteachmt
Level 15

I was confused, thinking this related to the SS deferral option. I forgot about these other two provisions.

"what type of documentation I will be required to retain for these credits."

Nothing requires a covid-positive test. It's more of an impacted because of covid issues status. And the family leave relates only to son and daughter. You would need to prove the person qualifies as self-employed and has a situation that meets the requirement(s).

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"Level Up" is a gaming function, not a real life function.
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sonadora-j
Level 2

True I have not seen anything that says I am required to have anything. These credits don't seem to be covered under due diligence laws like CTC, EIC and AOTC. I just don't want to have issues later on since the credit amounts can possible be hefty. 

qbteachmt
Level 15

The instructions are in draft right now:

https://www.irs.gov/pub/irs-dft/i7202--dft.pdf

It's only 3 pages. I recommend printing it out, highlighting what matters, and use it with your clients.

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"Level Up" is a gaming function, not a real life function.
sonadora-j
Level 2

I saw this also. I did advise the one client who has asked me that the wait time would be extended. Especially with them still working on that backlog of 7 million from last year. This tax season is gonna be a train wreck.

TaxGuyBill
Level 14

I got a response from Drake ...  🙂

 

Although Form 7202 or 8915E can not be directly e-filed, it CAN be attached as a PDF (and Drake automatically flows the numbers and prompts you to attach the PDF).

 

What ProSeries will do, I have no idea.