Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment income and the number of apply for setc tax credit workdays missed because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 USD or 100% of your average daily self-employment income for a set number of days when you couldn’t work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or two-thirds of your daily income from self-employment on average.
This applies for days when you were unable to work due to COVID-19 related circumstances.
Moreover, if both you setc tax credit irs and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.