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 potential credit 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 apply for setc tax credit you missed because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or all of your average daily self-employment income for a set number of days where you were unable to work because of reasons like being quarantined or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 USD or two-thirds of your average daily self-employment income.
This is applicable for days when you were unable to work because of COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can both claim up to a specified SETC Tax Credit limit, as long as you don't share the qualifying setc tax credit 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 disruptions, as well as the family leave tax credit.