Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit 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 income from self-employment for a set number of days where you couldn’t work due to reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the setc tax credit family leave credit amount is the lesser of $200 or 67% of your average daily self-employment income.
This applies for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can both claim a maximum Additional info SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.