Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next 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 total workdays you missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or all of your average daily self-employment income for a certain number of days when you couldn’t work because of reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 USD or 67% of your average daily self-employment income.
This is applicable for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if you and your spouse are self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility Helpful hints based on self-employment Additional info status and COVID-related interruptions, as well as the family leave credit.