Understanding SETC Limitations and Restrictions
Despite the significant benefits of the SETC Tax Credit, it is crucial to understand its limitations and restrictions.
As an illustration, when you claim the SETC Tax Credit, your adjusted gross income may increase, which could impact your eligibility for other tax credits and deductions.
The good news is, the SETC is not treated as taxable income, ensuring no additional tax liability will arise from the credit itself.
However, there are some restrictions you should be aware of.
The entire SETC amount is not claimable if you received wages for sick or family leave from your employer, or unemployment benefits throughout 2020 or 2021.
Also, if you did not file your initial tax return but want to claim or adjust SETC credits, you can do so by filing an amended return setc tax credit within the specified deadlines set for the 2020 Find more info and 2021 tax returns.