Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed because of COVID-19 effects.
For instance, the sick leave credit amount equates to the setc tax credit lesser of $511 USD or all of your average daily self-employment income for a certain number of days when you couldn’t work due to reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or setc tax credit irs two-thirds of your average daily self-employment income.
This is applicable for days when you were unable to work due to COVID-19 related reasons.
Moreover, if both 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 COVID days.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.