The total FFCRA Tax credit can be up to $32,200.00 and is based on your net earnings in 2020 and in 2021.
You will have to calculate your daily average of self-employment income. This is your net earnings for the taxable year divided by 260 (the standard recognized amount of working days in a year). This allows the IRS to estimate how much you lost in wages for every day you were not able to work.
WHAT DOES IT MEAN TO BE SELF-EMPLOYED?
A self-employed person in the United States, as defined by the Internal Revenue Service (IRS), is generally considered someone to who the following applies:
You carry on a trade or business as a sole proprietor or an independent contractor.
You are a member of a partnership that carries on a trade or business.
You are otherwise in business for yourself (including a part-time business or a gig worker).
WHAT IS THE DEFINITION OF A DEPENDENT?
The IRS defines a dependent as either a qualifying child or relative of the taxpayer. The relative can be your child, stepchild, foster child, sibling, parent, grandparent, grandchild, aunt, uncle, niece, nephew, or certain in-law relationships.
The Child Tax Credit helps families with qualifying children get a tax break. To have received a Child Tax credit or a credit for other dependents, you would have had to submit a Schedule 8821.
A child must have lived with you for more than half of the tax year. Temporary absences, such as for education or medical care, are generally counted as periods of living with you. You must have provided more than half of the relative’s total support during the tax year. The relative’s gross income must be below a certain threshold determined annually by the IRS (subject to change). It’s important to note that these are just general guidelines, and there may be additional rules and exceptions. The IRS provides detailed information in publications such as IRS Publication 501.
Examples of a Dependent:
Child
Parent
Brother/Sister
Stepparent/Stepchild
Adoptive Daughter/Adoptive Son
Stepbrother/Stepsister
Half Brother/Half Sister
Grandparent/Grandchild
Son-in-law/Daughter-in-law
Mother-in-law/Father-in-law
Brother-in-law/Sister-in-law
Uncle/Aunt
Niece/Nephew.