Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify setc tax credit irs for the SETC Tax Credit, the subsequent step involves calculating 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 number of workdays missed because of COVID-19 impacts.
For instance, the sick leave credit amount is equal setc tax credit to the lower of $511 USD or 100% of your average daily income from self-employment for a certain number of days where 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 lower of $200 USD or 67% of your average daily self-employment income.
This applies for the days in which you were unable to work because of COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, as long as you don't 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 tax credit.