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 potential credit 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 number of workdays missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or 100% of your average daily self-employment income for a certain number of days when you couldn’t work due to reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser Find more info of $200 or 67% of your daily income from self-employment on average.
This is applicable for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if both you and your spouse are 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 factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family setc tax credit leave credit.