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 because of COVID-19 impacts.
For instance, the sick leave credit amount equates to the lesser of Learn more here $511 USD or 100% 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 experiencing COVID-19 symptoms.
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 is applicable for days when you were unable to work because of COVID-19 related reasons.
Moreover, if you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, provided you don't share the qualifying setc tax credit days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.