Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step is Check out the post right here to calculate 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 due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 USD or all of your average daily income from self-employment for a certain number of days where you were apply for setc tax credit unable to work because of reasons like quarantine or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or two-thirds of your average daily self-employment income.
This applies for days when you were unable to work due to COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
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 disruptions, as well as the family leave tax credit.