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 influenced by your average daily self-employment income and the total workdays you missed due to COVID-19 impacts.
For instance, the sick leave credit amount equates to the lesser of $511 USD or all of your average daily income from self-employment 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 family leave credit amount is the lower setc tax credit of $200 USD or 67% of your daily what is the setc tax credit income from self-employment on average.
This is applicable for the days in which you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.