Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating your potential credit 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 Check out here due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or 100% of your average daily income from self-employment for a certain number of days when you couldn’t work due to reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or two-thirds of your average daily self-employment income.
This applies for the days in which you were unable to work due to COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, setc tax credit irs you can each claim a maximum SETC Tax Credit limit, provided you don't share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.