Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify 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 daily self-employment income on average and the total workdays you missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 USD or all of your average daily income from self-employment for a certain number of days when you were here unable to work because of reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 USD or two-thirds 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 both self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account setc tax credit eligibility according to self-employment status and COVID-related interruptions, as well as the family leave credit.