Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate your potential setc tax credit irs credit amount.
You can learn how below. The SETC Tax Credit amount is influenced 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 self-employment income for a set number of days where you were unable to work due to reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 or two-thirds of your daily income from self-employment on average.
This applies for the days in which you couldn’t perform services because of COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days Learn here related to COVID.
To determine your SETC Tax Credit, you would utilize 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.