Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the number of workdays missed because setc tax credit irs of COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lower of $511 or 100% of your average daily self-employment income for a certain number of days when you were unable to work due to reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or two-thirds of your average daily self-employment income.
This applies for the days in which you were unable to work because of COVID-19 related circumstances.
Moreover, if 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 determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility setc tax credit based on self-employment status and COVID-related interruptions, as well as the family leave credit.