[US] How To Get $1,000 If You Are A Freelancer, Gig Worker, or IC

[Daniel E.]

How To Get $1,000 If You Are A Freelancer, Gig Worker, Or Independent Contractor
Forbes.com
Apr 24, 2020

Under the CARES Act passed on March 27, 2020, independent contractors, gig workers, and freelancers affected by the coronavirus crisis are eligible to receive a government grant of $1,000. The SBA sometimes refers to these grants as "advances," but you are not required to repay this money to the government.

The application process involves filling out a simple SBA form requesting an Economic Injury Disaster Recovery Loan (EIDL), which provides for the advance even if the loan is not granted...

In addition to the entities that are already eligible for SBA disaster loans and grants, eligibility was expanded to include:

• Sole proprietorships, with or without employees
• Independent contractors
• Freelancers
• Gig workers

You must have been in business as of January 31, 2020. Expanded eligibility criteria and the grants are only available until December 31, 2020. But the SBA will quickly run out of money, so you should apply as soon as possible...

 

[Daniel E.]

Some of the other benefits in the US for ICs, including freelancers and self-employed:

Relief Available to Independent Contractors During Coronavirus Outbreak | Nolo

There are millions of independent contractors (ICs) in the United States. Also called freelancers or self-employed, they do everything from driving for Uber/Lyft to performing advanced computer programming. Like else, they have been severely impacted by the economic dislocation caused by the coronavirus (COVID-19) pandemic...

You Can Collect Unemployment Benefits

Ordinarily, independent contractors can't collect unemployment from their state unemployment insurance agency when they are out of work. This is because they are not employees and ordinarily do not pay unemployment taxes.

However, the Coronavirus Aid, Response, and Economic Security Act (CARES Act) passed by Congress makes independent contractors and gig workers eligible for unemployment for the first time. The CARES Act Pandemic Unemployment Assistance (PUA) program also increases the maximum unemployment benefit by $600 per week through July 31 and extends coverage by an additional 13 weeks, to a maximum of 39 weeks. You need to apply through your state unemployment office. Each state has its own eligibility requirements, benefit amounts, and application procedures. You can find a link to your state unemployment office at the Unemployment Benefits Finder.

Sick and Family Leave Tax Credits for the Self-Employed

Congress has enacted the "Families First Coronavirus Response Act" which includes special sick leave and family leave tax credits for the self-employed. You can qualify for the sick leave credit if you have to self-isolate, are experiencing symptoms and need to obtain a diagnosis, or comply with a self-isolation recommendation for coronavirus. You qualify for the family leave credit if you have to care for a son or daughter under 18 years of age whose school or place of care has been closed due to coronavirus.

The sick leave credit is equal to 100% of the average net self-employment income you earn per day for a maximum of 10 days. The credit is capped at $510 per day...

The family leave credit is equal to 67% of the average self-employment income you earn per day for a maximum of 50 days. But the credit is capped at $200 per day. Thus, the maximum credit is $10,000...