Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is determined by your daily self-employment income on average and the total workdays you missed due to COVID-19 impacts.
For instance, the sick leave credit amount is equal to the lesser of $511 USD or 100% of your average daily income from self-employment for a set number of days when you couldn’t work due to reasons like being quarantined or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or 67% of your average daily self-employment income.
This apply for setc tax credit is applicable for the days in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can both claim up to a specified Visit website SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.