Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility 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 average daily self-employment income and the total workdays you missed because of COVID-19 effects.
For instance, the sick leave credit amount is equal to the lower of $511 or 100% of your average daily self-employment income for a certain 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 lower of $200 or two-thirds of your daily income from self-employment on average.
This is applicable for the days in which you were unable to work because of COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors in setc tax credit irs eligibility according to self-employment status and COVID-related interruptions, as well Learn more as the family leave credit.