Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can setc tax credit find out how in the following details. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed because of COVID-19 impacts.
For instance, the sick leave credit amount is equal to the lesser of $511 USD or all of your more info average daily self-employment income for a set number of days where you couldn’t work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of $200 or 67% of your daily income from self-employment on average.
This applies for the days in which you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.