Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You can find out how in the following details. The SETC Tax Credit amount is determined by your average daily self-employment income and the number of workdays missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 or all of your average daily self-employment income for a certain number of days where you were unable to work because of reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 what is the setc tax credit USD or 67% of your daily income from self-employment on average.
This applies for days when you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as setc tax credit well as the family leave tax credit.