Question

Which taxpayer would use Form 7202?

Miguel is a sole proprietor with no employees. He was unable to work for two weeks while he took care of his wife, who tested positive for COVID-19.

Graciella is a sole proprietor with three employees. She paid two employees while they were out of work to care for their children while local schools were closed.

James is a sole proprietor with no employees. He also works for an employer. During the year, James missed five days of work at his Form W-2 job due to his daughter's school closing, but he was able to perform services in his self-employment activity for those days.

Bea is a sole proprietor with two employees. She paid both employees while her business was closed due to a state COVID-related mandate.

Answer 1

Answer - Miguel would use Form 7202.

Explanation-Miguel is a sole proprietor with no employees. He was unable to work for two weeks while he took care of his wife, who tested positive for COVID-19.

We know that Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals is provided on Form 7202 where the Number of days taxpayer were unable to perform services as a self-employed individual because of certain coronavirus-related care required. Hence care of wife, who tested positive for COVID-19 fulfills the condition of eligibility of Form 7202 along with the basic condition (Self-employed individuals) of Credits for Sick Leave and Family Leave for Miguel only.

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