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 number of workdays missed because of COVID-19 effects.
For instance, the sick leave credit amount is Website link equal to the lesser of $511 or all of your average daily self-employment income 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 67% of your daily income from self-employment on average.
This is applicable for days when you couldn’t perform services due to COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility according to self-employment status and Learn more COVID-related disruptions, as well as the family leave credit.