Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential 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, Learn more here the sick leave credit amount is equal to the lower of $511 or all of your average setc tax credit daily self-employment income for a set number of days when you couldn’t work because of reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or two-thirds of your average daily self-employment income.
This is applicable for days when you were unable to work because of COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, you can each claim up to a specified SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.