Calculating the SETC Tax Credit Refund
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 determined by your daily self-employment income on average and the total workdays you missed due to COVID-19 impacts.
For instance, the sick leave credit setc tax credit amount equates to the lesser of $511 USD or all of your average daily self-employment income for a set number of days where you were unable to work due to reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% of your average daily self-employment income.
This applies for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if you and your setc tax credit irs spouse are self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.