Author Topic: Contractor: Tax credit for school closing vs unemployment  (Read 422 times)


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Contractor: Tax credit for school closing vs unemployment
« on: March 26, 2020, 11:17:37 AM »

I currently work part-time as a contractor for a tech company. My kids school has been closed since March 8th due to Coronavirus. It is so difficult for both my husband and I to work from home with 3 little kids at home! Ages 6, 3 and 1. I make $2000 per month as a contractor 20 hrs per week. I worked when the kids were at kindergarten and preschool from 9-1. Since school has been cancelled Iím very stressed juggling everything! I saw that I can take unpaid leave from work while my kids school is cancelled due to corona and then get a tax credit when I file my 2020 taxes to recoup all or a percent of the money lost. (Families First Relief Bill). Iím not exactly sure how the credit will work. I asked for a 2 week unpaid break starting next week. It hasnít been approved yet. Now I think I might be laid off when I try to return to work in 2 weeks when the schools reopen after Easter. Can I get unemployment as a contractor if I take this school closing leave? I need a break but I donít want to screw myself out of unemployment, can contractors get unemployment? Iíve had this job for 11 months. I am a 1099 contractor. The company is headquartered in a different state and only has 2 employees in my state. I get paid $2000 and work 20 hrs a week. Do I qualify?

Thank you!!!
« Last Edit: March 26, 2020, 11:21:44 AM by KateFIRE »


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Re: Contractor: Tax credit for school closing vs unemployment
« Reply #1 on: March 26, 2020, 03:28:32 PM »
I don't think anyone is sure how the credit will work yet, the bill just got passed and the IRS will need to develop forms, instructions, etc. You could certainly make an educated guess based on the bill itself.

As for unemployment, there should be pretty good eligibility documentation on your state's unemployment office website. I would recommend avoiding calling the office to ask if you can, they're going to be completely swamped.