September 27th, 2023
In the tumultuous times brought on by the global pandemic, Owner Operators and Motor Carriers have faced unique challenges. As a brand deeply rooted in expertise and innovation, Workforce Insurance Underwriters strives to provide Insurance Agents and their Motor Carrier clients with high-quality information and insights to navigate these challenges.
Today, we're delving into tax credits that might be available to Owner Operators under the Families First Coronavirus Response Act (FFCRA) and the American Rescue Plan Act (ARPA). With potential savings as high as $32,200 for the 2020 and 2021 tax years, it's crucial to understand these provisions before they expire in April 2024.
Signed into law on March 18, 2020, the Families First Coronavirus Response Act initially provided tax credits to eligible self-employed taxpayers, such as Owner Operators, who could not work from April through December 31, 2020, due to COVID-19. This credit was extended to cover the period up to March 31, 2021.
On March 11, 2021, President Joe Biden signed the American Rescue Plan Act. This legislation extended the tax credits for self-employed workers through September 30, 2021.
The FFCRA expanded COVID-19-related tax credits to include self-employed workers, such as Owner Operators, freelancers, and gig workers. The ARPA extended this credit, allowing for more claim opportunities on 2020 and 2021 tax returns.
The self-employed tax credits are designed to provide tax savings for individuals who could not work due to COVID-19.
Eligibility includes:
The financial burden on Owner Operators can be overwhelming in these challenging times. The FFCRA and the ARPA can provide relief through tax credits for those unable to work due to COVID-19 in 2020 and 2021. Understanding these provisions and leveraging them can provide Owner Operators significant financial relief. Remember, each situation is unique, and it's crucial to consult with a tax professional to ensure that Owner Operators maximize their potential tax credits.
To learn more about Workforce Insurance Underwriters and the tax credits available to Owner Operators under the FFCRA or the ARPA, book a meeting with an industry expert by clicking here.
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