Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the next step is to calculate 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 number of workdays missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 or 100% of your average daily income from self-employment for a certain number of days when you couldn’t work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of $200 or two-thirds of your daily income from self-employment on average.
This is applicable for days when you were unable to work because of 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 what is the setc tax credit to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to setc tax credit self-employment status and COVID-related disruptions, as well as the family leave credit.