Most self-employed spa, barbering and beauty professionals, booth renters and 1099 workers are still allowing thousands of federal relief dollars to slip by them, unclaimed.
The Professional Beauty Federation is feverishly helping these independent professionals claim this last retroactive government Covid relief program before the program ends. But there has been considerable confusion and questions about this federal relief program for self-employed professionals. The Professional Beauty Federation aims to bring clarity to the program and address the preconceived myths about qualifications and applying.
Congress designed the Family First Coronavirus Response Act (FFCRA) to compensate self-employed workers for sick leave and child care during the 2020 and 2021 pandemic. It is a refundable tax credit based upon taxes one has already paid, which the vast majority of self-employed workers are not even aware they are eligible to receive. To qualify, an applicant must have reported self-employed income on their Schedule SE form of the standard 1040 tax return in either 2020 or 2021.
The Professional Beauty Federation has partnered once again with Adesso Capital, a successful partnership that helped over 10,000 beauty professionals receive PPP forgivable relief funds and thousands of salon owners with W-2 employees receive ERC funds.
Fred Jones, PBF Legal Counsel and Industry Advocate stated: “We are very proud of our record of successfully assisting nearly 15,000 spa, barbering and beauty professionals and businesses already obtain federal assistance via PPP and ERC. And now we’re focused like a laser on providing financial relief to self-employed individuals via these FFCRA credits. We are the only trade association in the country that has stood-up a fully self-guided, online portal that generates and submits all of the necessary paperwork and filings for our beloved industry professionals.”
While the PPP program terminated back in 2022 and new ERC applications have been placed on a temporary hold by the IRS, the federal government continues to award FFCRA tax credits to self-employed tax payers. In order to clear up apparent confusion among independent beauty professionals about FFCRA, here’s some clarity about this retroactive financial relief opportunity:
Myth 1: If I received PPP, then I am not eligible for FFCRA.
NOT TRUE: Even if you received some other government assistance during Covid, including PPP, unemployment, or other grants, you may still receive FFCRA tax credits.
Myth 2: I have to pay taxes on the FFCRA money I receive from the IRS.
NOT TRUE: The money you receive is a credit on taxes you already paid. You do not owe taxes from any FFCRA payment from the IRS. The money is the recipient’s, free and clear, with no payback obligation and no need to apply for forgiveness. And one can spend it however they want.
Myth 3: Because of the lockdowns, I didn’t make much money in 2020 and 2021. My net income was too low to qualify
NOT TRUE: Through our unprecedented online portal application, the IRS allows PBF to use your 2019 income as the benchmark for your earnings capacity to calculate your daily tax credit amount.
Myth 4: I received unemployment so I won’t qualify
NOT TRUE: Depending on the number of missed work days compensated by unemployment benefits compared to the total number of missed work due to Covid, you may still qualify for FFCRA tax credits. The PBF online portal will help sort that all out and will calculate the amount of your remaining tax credit eligibility.
Myth 5: I was paid as a W-2 employee but also did other freelance work (self-employed/1099); therefore, I won’t qualify for FFCRA
NOT TRUE: Again, this tax credit is based on your self-employed income, and the PBF online portal will do the necessary calculations to see if that income is sufficient to qualify for some FFCRA relief.
Myth 6: I didn’t actually have Covid in 2020 or 2021 so I don’t qualify.
NOT TRUE: Whether you missed work because of government lockdowns, self or salon imposed quarantine, or the need to take care of children at home due to school closures, or other reasons related to this global pandemic, you can still receive retroactive FFCRA funds.
Myth 7: I saw this marketed on Instagram. This looks like a scam. Getting money back from the IRS for 2020 and 2021 can’t be for real.
NOT TRUE: This is an official IRS program funded by the federal government. Go to www.ProBeautyRelief.com/ffcra to link to the IRS site that explains FFCRA in greater detail.