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 total workdays you missed because of COVID-19 impacts.
For instance, the sick leave credit Visit this link 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 because of reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent setc tax credit amount is the lower of $200 USD or two-thirds of your daily income from self-employment on average.
This applies for days when you couldn’t perform services due to COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.