Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.
You can find out how in the following details. The SETC Tax Credit amount is determined by your daily self-employment income on average and the number of workdays missed because of COVID-19 effects.
For instance, the qualified sick leave More help equivalent amount is equal to the lower of $511 or all of your average daily self-employment income for setc tax credit irs a certain number of days when you couldn’t work due to reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 USD or two-thirds of your average daily self-employment income.
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 up to a specified SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.