Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment income 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 USD or all setc tax credit irs of your average daily self-employment income for a certain number of days where you couldn’t work because of reasons like being quarantined or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 USD or two-thirds of your daily income from self-employment on average.
This applies for days when you were unable to work due to COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based Click for more on self-employment status and COVID-related interruptions, as well as the family leave tax credit.