Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility Continue reading for the SETC Tax Credit, the subsequent step involves calculating your possible refund amount.
You can find out how in the following details. The SETC Tax Credit amount is determined by your setc tax credit daily self-employment income on average and the number of workdays missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 or all of your average daily self-employment income for a set number of days where you were unable to work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% of your daily income from self-employment on average.
This applies 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 each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
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 credit.