Calculating the SETC Tax Credit Refund
Once you've established that you qualify Go here for the SETC Tax Credit, the subsequent step is to calculate your potential credit amount.
You can find out how in the following details. The SETC Tax Credit amount is determined by your daily self-employment income on average and the number of workdays missed because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 or 100% of your average daily self-employment income for a certain number of days when you were unable to work due to reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or two-thirds of your average daily self-employment income.
This is applicable for days when you were unable to work due to COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can both claim up to a specified SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and what is the setc tax credit COVID-related disruptions, as well as the family leave credit.