COVID Sick Leave/Family Leave, Getting Credit on Tax Return, Self Employed

[GastroMastro]

(Posted this on bogleheads with no response, I hope someone on here can help, I am sure I am not the only one encountering this issue)

I need help understanding how TurboTax is calculating the Self Employed credit I am claiming. On the TT site, there are two interviews, one for Sick Leave and one for family Leave.

The Sick Leave asks how many days YOU were sick or quarantined from COVID, and it also asks how many days you were caring for child whose childcare provider was unavailable due to covid 19

The family leave asks again, how many days you were caring for child whose childcare provider was unavailable due to covid 19.

This is essentially asking the same question twice. However, we are only supposed to count it once. If i enter in the correct number of days I had to not work due to childcare issues, 21, in the sick leave section, it gives me a vastly different result compared to the amount of the credit I get when I enter the number of days in the family leave section. In this example, my tax due is about $1000 less if I enter the 21 in the family leave section.

Could anyone clarify this or is anyone encountering the same confusion?

Thank you!

[Cubicle]

https://www.irs.gov/newsroom/special-issues-for-employees#how-qualified-sick-leave-equivalent-amount-eligible-self-employed-individual-calculated

Specifically paragraph 61.

"multiplied by the lesser of $511 or 100 percent of the “average daily self-employment income”"

vs

"multiplied by the lesser of $200 or 67 percent of the “average daily self-employment income”"

[Tim]

“n either case, the maximum number of days a self-employed individual may take into account in determining the qualified sick leave equivalent amount is ten.

Note: The only days that may be taken into account in a taxable year in determining the qualified sick leave equivalent amount for the year are days occurring during the year and during the period beginning on April 1, 2020, and ending on March 31, 2021.”

Read paragraph 64 as well.I question the “count it once”. There seems to be an adjustment that is made. I would enter in both interview sections.

[GastroMastro]

“n either case, the maximum number of days a self-employed individual may take into account in determining the qualified sick leave equivalent amount is ten.

Note: The only days that may be taken into account in a taxable year in determining the qualified sick leave equivalent amount for the year are days occurring during the year and during the period beginning on April 1, 2020, and ending on March 31, 2021.”

Read paragraph 64 as well.I question the “count it once”. There seems to be an adjustment that is made. I would enter in both interview sections.

Tim, I entered the same number, 21 days of family leave, in both interviews, and the amount it reduced my tax seemed to be way, way too much. Obviously I don’t want to miss out on savings but the last thing I want is to try and claim it twice.

[GastroMastro]

https://www.irs.gov/newsroom/special...ual-calculated

Specifically paragraph 61.

"multiplied by the lesser of $511 or 100 percent of the “average daily self-employment income”"

vs

"multiplied by the lesser of $200 or 67 percent of the “average daily self-employment income”"

I think what is happening is, I think the first ten days of family leave may not be counted (to account for 10 days of sick leave). So I am wondering if it is adjusting my credit down by 10 days.

Maybe if I put 3 days sick leave then 7 days family leave in the first section, then in the second section out the remaining 14 days? Doesn’t seem right. I’m only trying to claim $200 per day for the 21 days, not the full $551. My inclination is to put all 21 days in section 2.

[Tim]

Tim, I entered the same number, 21 days of family leave, in both interviews, and the amount it reduced my tax seemed to be way, way too much. Obviously I don’t want to miss out on savings but the last thing I want is to try and claim it twice.

I just read some of the IRS notice above.
Max number of days is 10. It defines the method of computation and the adjustment.
Paragraph 62 defines the daily compensation.
The federal tax review may kick out something else.
TurboTax is typically excellent at programming and the allowed credits or dedications.
I would have thought they would reduce the day’s to 10. For $50 bucks you can get their live CPA.

[GastroMastro]

I just read some of the IRS notice above.
Max number of days is 10. It defines the method of computation and the adjustment.
Paragraph 62 defines the daily compensation.
The federal tax review may kick out something else.
TurboTax is typically excellent at programming and the allowed credits or dedications.
I would have thought they would reduce the day’s to 10. For $50 bucks you can get their live CPA.

Maximum days is 10 for sick leave but up to 50 for family leave