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 find out how in the following details. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the total workdays you missed because of COVID-19 impacts.
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 Look at more info days when you were unable to work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or 67% of your average daily self-employment income.
This is applicable for days when you couldn’t perform services because of COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.