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 setc tax credit potential credit amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the total workdays you missed what is the setc tax credit because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or 100% of your average daily income from self-employment for a certain number of days where you couldn’t work because of reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower of $200 or 67% of your daily income from self-employment on average.
This is applicable for the days in which you were unable to work because of COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, provided you don't share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.