Self-employed individuals are not able to receive the Employee Retention Credit for their own self-employment income.
However, if a self-employed individual hires employees for their business and meets the qualifications to be considered an Eligible Employer, they may be eligible for the Employee Retention Credit for the wages paid to their employees. This credit is designed to help employers retain their employees during difficult economic times and is intended to help businesses affected by the COVID-19 pandemic. It is important for self-employed individuals to understand the requirements for eligibility and to consult with a tax professional to determine if they qualify for the credit. Despite being unable to receive the credit for their own self-employment income, self-employed individuals who employ others may still be able to benefit from the Employee Retention Credit and should explore their options.
References
- Internal Revenue Service (IRS)
https://www.irs.gov/coronavirus/employee-retention-credit - The CARES Act
https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf - U.S. Department of Labor
https://www.dol.gov/agencies/whd/pandemic/ffcra-employee-paid-leave - FAQs: Employee Retention Credit under the CARES Act
Internal Revenue Service (IRS)
https://www.irs.gov/newsroom/faqs-employee-retention-credit-under-the-cares-act