Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment income and the total workdays you 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 income from self-employment for a certain number of days where 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 lesser of $200 USD or two-thirds of your daily income from self-employment on average.
This is applicable for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if both you and your spouse apply for setc tax credit are both self-employed, you can both claim up to a specified SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.