IRS makes updates on paid sick and family leave tax credits under the COVID-19 Stimulus Package


IRS: "The paid sick and family leave credits reimburse eligible employers for the cost of providing paid sick and family leave for reasons related to COVID-19."

FILE – In this Tuesday, July 6, 2021 file photo, a health worker prepares a Moderna COVID-19 vaccine at a vaccination center, in Lahore, Pakistan. A top official at the European Medicines Agency said on Thursday, July 15 a decision on whether to recommend that Moderna’s COVID-19 vaccine be authorized for children is expected late next week, in what could be the first such license for the shot’s use in children globally. (AP Photo/K.M. Chaudary, file)

WASHINGTON, D.C. (BRPROUD) – The Internal Revenue Service is doing what they can to encourage people to get the COVID-19 vaccine.

Specifically, the IRS is providing incentives to employers.

The incentives center around updates made to “the paid sick and family leave tax credits under the American Rescue Plan Act of 2021.”

The IRS is providing details about the paid sick and family leave tax credits.

“The updates clarify that eligible employers can claim the credits for providing leave to employees to accompany a family or household member or certain other individuals to obtain immunization relating to COVID-19 or to care for a family or household member or certain other individuals recovering from the immunization,” according to the Internal Revenue Service.

These tax credits can now be claimed for leave taken between these dates:

  • April 1, 2021, through September 30, 2021

The IRS states that under the COVID-19 Stimulus Package, “eligible employers, including businesses and tax-exempt organizations with fewer than 500 employees and certain governmental employers, may claim tax credits for qualified leave wages and certain other wage-related expenses (such as health plan expenses and certain collectively bargained benefits).”

So what about those that are self-employed?

Those who are self-employed can also “claim comparable credits on the Form 1040, U.S. Individual Income Tax Return,” according to the IRS.

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