Are you a freelancer looking for innovative ways to boost your business's growth? Maybe it's time you explored the Families First Coronavirus Response Act. This financial "hack" is creating waves in freelancing, but so many don't even know it exists!
So, let's delve into the FFCRA's potential to skyrocket your earnings and how it can help your business bounce back from the hit COVID-19 caused. Whether you're just starting out or an established freelancer, this game-changing legislation may be the key to unlocking new avenues of success for your business.
The Families First Coronavirus Response Act (FFCRA) is a legislation enacted in the United States in response to the COVID-19 pandemic. While the FFCRA primarily focuses on providing relief to employees, it also includes provisions that can benefit freelancers and self-employed individuals by refunding taxes already paid, up to $32,220 in the form of tax credits.
Here's how it works:
Emergency Paid Sick Leave: Under the FFCRA, freelancers who were unable to work or provide services due to COVID-19-related reasons may be eligible for up to two weeks (80 hours) of paid sick leave at their average pay rate. This includes situations where the freelancer is subject to a quarantine order, experiencing COVID-19 symptoms, or caring for someone affected by the virus.
Expanded Family and Medical Leave: Freelancers who needed to take care of their child due to school or childcare facility closures can qualify for up to twelve weeks of partially paid leave.
However, there are some stipulations that freelancers must meet to be eligible to qualify for the benefits provided by the FFCRA. Also, the FFCRA won’t be available forever, so it's essential to utilize tools like Madison Tax Group that are designed to ensure your application is accurate and approved by the IRS.
One of the reasons so few freelancers are taking advantage of the FFCRA is that they don't understand how tax credits can be used to grow their businesses. Let's discuss ways you can utilize your FFCRA refund and hack your business' financials.
1. Use it to pay off outstanding tax debt - If you're behind on your taxes, the FFCRA is a game-changer. Since it's a tax credit and not a refund, you can directly apply the funds back into your outstanding tax debt, giving you some breathing room with the IRS.
2. Pay off outstanding debt - So many freelancers had to rely on credit cards and loans to stay afloat during COVID-19 lockdowns that it's no surprise credit card debt is at an all-time high. You can use your refund to get out from under your accrued debt in one chunk since the refund is sent directly to your home or bank account.
3. Use it to invest in your business - If you're up to date with your taxes, then the sky's the limit with what you can do with your credits. Unlike PPP loans, there are no restrictions on using your FFCRA funds, and you'll never need to apply for forgiveness or pay it back. Here are a few ideas for how it can be used to grow your business:
The Freelancers' Financial Coronavirus Relief Act (FFCRA) serves as a valuable financial hack for freelancers looking to bounce back from the losses taken because of COVID-19 restrictions. By understanding the FFCRA's provisions and leveraging its benefits, freelancers like you can achieve financial stability and explore new ways to grow your business. However, it is essential to consider the limitations and seek professional help, like the Madison Tax Group platform, to make the most of the FFCRA and ensure your funds are sent as quickly as possible.
