Self-employed workers who filed as 1099 contractors in 2021 have until April 15 to claim a federal tax credit worth up to $32,000, according to the Economic Recovery Center.
The credit, which was launched in 2021 and later expanded through federal emergency leave programs, remains unclaimed by millions of gig workers, real estate agents, freelancers, and other self-employed individuals, the organization said.
“If unclaimed, these funds will be distributed to other government programs,” said Chase Henderson, president of the Economic Recovery Center, a Florida-based organization that promotes awareness of relief programs.
The tax credit stems from provisions under the Emergency Paid Sick Leave Act (EPSLA) and the Emergency Family and Medical Leave Expansion Act (FMLA), which aimed to support workers who missed time due to illness or caregiving responsibilities during the pandemic.
Eligible individuals must have filed taxes as 1099 independent contractors in 2021 and experienced a loss of income because of illness or having to care for a dependent. The maximum refund is $32,000, although the actual amount varies based on individual circumstances.
Henderson said the credit has been “overlooked by the financial sector,” which focused largely on programs for businesses with W-2 employees.
The application deadline is April 15. According to the Economic Recovery Center, applicants should allow up to three days to determine eligibility. Individuals who are no longer self-employed but filed as 1099 contractors in 2021 may still qualify.
For more details, applicants are directed to check with the IRS or use resources provided by the Economic Recovery Center.
