Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed due to COVID-19 effects.
For instance, the sick leave credit amount is equal to the lower of $511 or all of your average daily income from self-employment for a set number of days where Helpful site you couldn’t work due to reasons like being quarantined or having COVID-19 signs.
apply for setc tax credit On the other hand, the family leave credit amount is the lower of $200 or two-thirds of your daily income from self-employment on average.
This applies for the days in which you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.