The 1099 SETC Tax Credit is not a scam. This legitimate tax credit that was part of the Families First Coronavirus Response Act (FFCRA) passed by congress in 2021. However, it’s possible that you’re encountering misinformation or confusion about it. The name “1099 SETC” isn’t widely recognized and may be used in contexts that are unclear or misleading.
Things to consider:
1. What the 1099 SETC Tax Credit Actually Is
The 1099 SETC Tax Credit refers to the Self-Employed Taxpayer Sick and Family Leave Credit (SETC) that was available to self-employed individuals under the FFCRA to claim sick leave or family leave benefits due to COVID-19. It’s a legitimate, refundable tax credit for self-employed workers who were affected by the pandemic. Things such as being unable to work due to illness, quarantine, or caregiving responsibilities.
2. Potential Confusion or Scams
While the 1099 SETC credit itself is legitimate, scammers often attempt to exploit confusion around the tax credit. Here are a few warning signs of potential scams:
- Unsolicited Offers: If you receive a message (via email or phone) from someone offering to “help” you claim the 1099 SETC Tax Credit, be cautious. The IRS does not contact taxpayers unsolicited. Any legitimate tax credits or refunds should come directly through your tax filing services. Service such as a specialized tax recovery expert or through the IRS’s official channels. Always Google the company name to check for anything suspicious.
- Request for Personal Information: Scammers may ask for personal details like your Social Security Number, bank account information, or other sensitive data in order to “process” your tax credit. The IRS never asks for such information through email or over the phone unless you’re directly contacting them.
- Fake Forms or Filings: Some fraudulent companies may claim to help you fill out tax forms related to the 1099 SETC credit, like Form 7202, for a fee. If these services are not legitimate, you could be paying money for services you don’t need, or worse, falling victim to identity theft.
- Promises of Large Refunds: Be wary of any claim that you qualify for a significant refund or credit without having actually met the eligibility requirements, or if it seems too good to be true. Refunds for tax credits under FFCRA are limited to specific situations. Anyone claiming to “guarantee” a refund could be misleading you. The max credit for 2021 is $32K, the $32K in credit for 2020 has already expired.
Are you eligible for the SETC tax credit?
Click here to see if you qualify and how to recover up to $34K in refunds owed to you.
Click Here3. How to Stay Safe
- Check Official IRS Sources: Always use IRS.gov for information on any tax credit or form related to COVID-19. The IRS has official guidance and updates on eligibility, claim processes, and deadlines.
- Use a Trusted Tax Recovery Professional: If you are self-employed and believe you qualify for the SETC Tax Credit or need help with the process, consider working with a Certified Public Accountant (CPA) or another tax professional who can assist you in filing correctly and legally.
- Verify Tax Filings: If you’re unsure whether you’ve claimed the correct credits or suspect any errors on your tax return, you can review your past filings or reach out to the IRS for clarification.
The Bottom Line
The 1099 SETC Tax Credit itself is a real, legitimate credit for self-employed individuals who were affected by COVID-19, but like any tax-related program, it has unfortunately been the target of scams and confusion. If you’re uncertain whether you’re dealing with a legitimate offer, it’s always best to research thoroughly and contact the IRS or a trusted tax professional.
You can recover this lost money very easily by working with a tax recovery expert who can get you back every penny you’re owed. To find a qualified expert in the SETC tax credit click here
Learn more about the SETC tax credit
- What is the 1099 SETC Tax Credit?
- Why Did My Accountant Not File For The SETC Tax Credit Already
- Do You Qualify for the SETC Tax Credit?
- How Much Time Is Left to Apply for the SETC Tax Credit
- How Do I Apply For the 1099 Worker SETC Tax Credit
You could be owed $1000’s by the IRS
If you filed a Schedule C or form SE with your 2020 or 2021 taxes
Click here now to see how you can claim this refund.
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