Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your possible refund amount.
You can find out how in the following details. 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 qualified sick leave equivalent amount is equal to the lesser of $511 USD or 100% of your average daily income from self-employment for a certain number of days when you couldn’t work due to reasons like quarantine or having COVID-19 setc tax credit symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or two-thirds of your daily income from self-employment on average.
This is applicable for days when you were unable to work due to COVID-19 related circumstances.
Moreover, if you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not setc tax credit irs share the qualifying days related to COVID.
To determine 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 tax credit.