Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential credit 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 due to COVID-19 impacts.
For instance, the sick leave credit amount equates to the lesser of $511 USD or 100% setc tax credit of your average daily income from self-employment for a set number of days when you couldn’t work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower of $200 USD or 67% of your average daily self-employment income.
This applies for days when you couldn’t perform services because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can each claim up to a specified SETC apply for setc tax credit Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as well as the family leave tax credit.