Calculating the SETC Tax Credit Refund
Once you've established that you qualify 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 setc tax credit self-employment income and the number of workdays missed due to COVID-19 effects.
For instance, the sick leave credit amount equates to the lesser of $511 USD or all of your average daily income from self-employment for a set number of days where you couldn’t work setc tax credit irs because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or two-thirds 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 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 calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave tax credit.