Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment income and the total workdays you missed due to COVID-19 effects.
For instance, the sick leave credit amount equates to the lesser of $511 what is the setc tax credit USD or 100% of your average daily self-employment income for a certain number of days where you were unable to work because of reasons like being quarantined or experiencing 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 days when you couldn’t perform services because of COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would setc tax credit irs utilize IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.