Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent 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 setc tax credit irs average daily self-employment income and the number of workdays missed due setc tax credit to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 or all of your average daily income from self-employment for a set number of days where you were unable to work because of reasons like being quarantined or having COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 or two-thirds of your average daily self-employment income.
This is applicable 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 both claim up to a specified SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
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 interruptions, as well as the family leave tax credit.