Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step is to calculate 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 number of workdays missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lower of $511 or 100% of your average daily self-employment income for a set number of setc tax credit days where you couldn’t work because of reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower 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 reasons.
Moreover, if both you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying days related to COVID.
Discover more To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.