Calculating the SETC Tax Credit Refund
Once you've established that you qualify 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 daily self-employment income on average and the number of workdays missed due to COVID-19 effects.
For instance, setc tax credit the sick leave credit amount equates Click for info to the lesser of $511 USD or 100% of your average daily income from self-employment for a set number of days where you were unable to work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 USD or two-thirds of your average daily self-employment income.
This applies for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related interruptions, as well as the family leave credit.