Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can find out how in the following details. The SETC Tax Credit amount is influenced by your 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 lower of $511 USD or all of your average daily income from self-employment for a set number of Learn more days where you were unable to work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave apply for setc tax credit credit amount is the lesser of $200 or 67% of your average daily self-employment income.
This applies for the days in which you were unable to work because of COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.