Calculating Your SETC Tax Credit Refund Amount
setc tax credit After determining your eligibility 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 influenced by your average daily self-employment income and the number of workdays missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or 100% of your average daily income from self-employment for a set number of days where you couldn’t work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower 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 because of COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based Click for source on self-employment status and COVID-related disruptions, as well as the family leave credit.