Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility 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 daily self-employment income on average and the total workdays you missed because of COVID-19 effects.
Additional info For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 USD or all of your average daily income from self-employment for a set number of Visit the website days when you couldn’t work due to reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or two-thirds of your average daily self-employment income.
This is applicable for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can both claim up to a specified 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 takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.