You report your business income as self-employed on Schedule C of your Form 1040 if you
receive 1099 income,
operate your business as a single-member LLC and did not elect corporate status,
operate a retail establishment or professional practice as a sole proprietor, or
report your W-2 income on a Schedule C because you are a statutory employee.
In the past, when times were bad, your government made no special effort to help you as a self-employed individual. For example, you had no “safety net” such as existed for employees who lost their jobs. You were just supposed to suck it up until things got better.
But this time, with COVID-19, it’s different.
In this article we cover the following seven benefits that are available to you as a self-employed individual:
Up to $41,666 in Paycheck Protection Program (PPP) tax-free monies with the combination of first- and second-draw forgivable loans
Up to $500,000 of Economic Injury Disaster Loans (EIDLs) at 3.75 interest
Up to $10,000 in tax-free EIDL Advances
Up to $10,000 in tax-free Targeted EIDL Advances
Up to $33,022 in sick and family leave refundable tax credits ($15,511 with your 2020 tax return and $17,511 with your 2021 tax return)
Possible large reductions in your cost of health insurance under the newly available Affordable Care Act (ACA) premium tax credits
Qualification for unemployment benefits
Why this largesse? Perhaps because so many Americans are now self-employed—up to 44 million by some counts.
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