Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your possible refund 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 you missed due to COVID-19 impacts.
For instance, the sick leave credit amount is equal to the lesser of $511 USD or 100% of your average daily self-employment income for a set number of days where you couldn’t work because of reasons like being quarantined or experiencing COVID-19 signs.
On the other Helpful site hand, the qualified paid family leave equivalent amount is the lower of $200 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 reasons.
Moreover, if what is the setc tax credit you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.