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 learn how below. The SETC Tax Credit amount is determined by your daily what is the setc tax credit self-employment income on average and the number of workdays missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 USD or 100% of your average daily self-employment income for a certain number of days setc tax credit irs when you were unable to work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 USD or 67% of your daily income from self-employment on average.
This applies for days when you couldn’t perform services due to 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, provided you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.