Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 or all of your average daily self-employment income for a set number of days when you couldn’t work due to reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower of $200 or 67% of your daily income from self-employment on average.
This applies for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To calculate your setc tax credit SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave Click for more info credit.