Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next step is to calculate 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 number of workdays missed due to COVID-19 effects.
For instance, the sick leave credit amount equates to the lesser of $511 USD or 100% of your average Visit the website daily income from self-employment for a set number of days where you were unable to work because of reasons like quarantine or experiencing COVID-19 signs.
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 days when you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would utilize IRS Learn more Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.