Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You can find out how in the following details. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount equates to the lower of $511 or all of your average daily self-employment income for a set number of days where you couldn’t work due to Additional resources reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 or two-thirds of your average Additional hints daily self-employment income.
This applies for days when you were unable to work because of COVID-19 related reasons.
Moreover, if both 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 days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.