Calculating the SETC Tax Credit Refund
Once you've established that you qualify 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 average daily self-employment income and the number of workdays missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 or 100% of your average daily self-employment income for a set number of days where you couldn’t work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or 67% of your average daily Visit website self-employment income.
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 up to a specified SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To determine your SETC Tax Credit, what is the setc tax credit you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.