Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating your possible setc tax credit refund amount.
You can learn how below. 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 equates to the lower of $511 or 100% of your average daily self-employment income for a set number of days when you couldn’t work because of reasons like quarantine or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or two-thirds of your average daily self-employment income.
This is applicable for days when you couldn’t perform services what is the setc tax credit due to COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can each 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 factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave credit.