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 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 because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 USD or 100% of your average daily income from self-employment for a set number of days where you couldn’t work Home page due to reasons like being quarantined or having COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of $200 USD or 67% of your average daily self-employment income.
This is applicable for the days in which you couldn’t perform services because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, as long setc tax credit as you don't share the qualifying COVID days.
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 tax credit.