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 average daily self-employment income and the total workdays you missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lower of $511 or 100% of your average daily self-employment income for a set number of days where you couldn’t work due to reasons like being quarantined or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of setc tax credit $200 USD or 67% Informative post of your average daily self-employment income.
This applies for days when you were unable to work due to COVID-19 related circumstances.
Moreover, if you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.
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 credit.