Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is determined by your daily self-employment income on average Go here and the number of workdays 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 certain number of days where you couldn’t work because of reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 USD or two-thirds 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 apply for setc tax credit related reasons.
Moreover, if you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine 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.