Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your potential credit 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 because of COVID-19 effects.
For instance, the sick leave credit amount is setc tax credit irs equal to the lesser of $511 or all of your average daily income from self-employment for a certain number of days where you couldn’t work because of reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 or 67% of your daily income from self-employment on average.
This applies for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can each setc tax credit claim up to a specified SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.