Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step is to calculate your possible refund amount.
You can learn how below. The SETC Tax Credit amount is influenced by your average daily self-employment income and the number of 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 certain number of days when you couldn’t work because of reasons like quarantine or having 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 due to COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, as long what is the setc tax credit as you do not share the qualifying days related to COVID.
To determine your setc tax credit 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.