Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment The original source income and the total workdays you missed due to COVID-19 effects.
For instance, the sick leave credit amount equates to the lower of $511 USD or all of your average daily self-employment income for a certain number of days where you were unable to work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or 67% of your daily income from self-employment on average.
This applies for days when you were unable to work because of COVID-19 related reasons.
Moreover, if both you and setc tax credit your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.