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 and the total workdays you missed due to COVID-19 effects.
For instance, the qualified sick leave setc tax credit irs equivalent amount is equal to the lower get more info of $511 or 100% of your average daily self-employment income for a certain number of days when you were unable to work because of reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of $200 USD or 67% of your daily income from self-employment on average.
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 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 use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related interruptions, as well as the family leave credit.