Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next 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 because of COVID-19 effects.
For instance, the sick leave credit amount equates to the lower of $511 or all of your average daily income from self-employment for a certain number of days when you were unable to work due to reasons setc tax credit like being quarantined or having COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of $200 or Great post to read 67% of your daily income from self-employment on average.
This applies for days when you couldn’t perform services because of COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.