Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating 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 because of COVID-19 setc tax credit impacts.
For instance, the qualified sick Click here to find out more leave equivalent amount is equal to the lower of $511 USD or all of your average daily income from self-employment for a certain number of days where you were unable to work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or 67% of your average daily self-employment income.
This is applicable for the days in which you were unable to work due to COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use 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.