Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential credit 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 due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lower of $511 USD or all of your average daily self-employment income for a setc tax credit set number of days where you couldn’t work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or 67% of your what is the setc tax credit daily income from self-employment on average.
This applies for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if 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 factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave credit.