Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step is to calculate your potential credit amount.
You can learn how below. 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 sick leave credit amount equates to the lesser of $511 USD or 100% of your average daily self-employment income 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 lower of $200 or two-thirds of your average daily self-employment income.
This applies for the days in which you couldn’t perform services because of COVID-19 related reasons.
Moreover, if you and your spouse are 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 calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in setc tax credit irs eligibility based on self-employment status and Look at this website COVID-related interruptions, as well as the family leave credit.