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 possible refund 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 effects.
For instance, the sick leave credit amount is equal to the lower of what is the setc tax credit $511 or 100% of your average daily income from self-employment for a set number of setc tax credit days where you were unable to work due to reasons like quarantine or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower of $200 USD or 67% of your daily income from self-employment on average.
This is applicable for days when you couldn’t perform services due to COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.