Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step is to calculate your potential credit 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 to the lesser of $511 or 100% of your average daily income setc tax credit from self-employment for a set number of days when you couldn’t work because of reasons like quarantine or having COVID-19 signs.
You can find out more On the other hand, the family leave credit amount is the lesser of $200 or 67% 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 you and your spouse are self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.