Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next 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 average daily self-employment income and the total workdays you missed due to COVID-19 impacts.
For instance, the sick leave credit amount is equal to the lesser of $511 USD or all of your average daily self-employment income for a certain number of days when you were unable to work due to reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the setc tax credit lesser of $200 USD or 67% of your daily income from self-employment on average.
This applies for the days in which you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your Learn here spouse are self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.