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 possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your daily self-employment income on average and the number of workdays missed due to COVID-19 impacts.
For instance, the what is the setc tax credit qualified sick leave equivalent amount equates to the lower of $511 or all of your average daily income from self-employment for a certain number of days when you couldn’t work setc tax credit because of reasons like quarantine or having COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 USD or two-thirds of your average daily self-employment income.
This is applicable for days when you couldn’t perform services 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 use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.