Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility 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 influenced by your View website average daily self-employment income and the total workdays you missed because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or 100% of your average daily income from self-employment for a set number of days when you were unable to work due to reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 USD or 67% of your average daily self-employment income.
This is applicable for days when you couldn’t perform services because of COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment Click here for more info status and COVID-related interruptions, as well as the family leave credit.