Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You Browse this site can find out how in the following details. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 effects.
For instance, the sick leave credit amount equates to the lower of $511 or all of your average daily self-employment income for a set number of days when you couldn’t work because of reasons like being quarantined or having COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 or 67% of your daily income from self-employment on average.
This applies for days when you couldn’t perform services because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which setc tax credit factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.