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 learn how below. The SETC Tax Credit amount is determined by your daily self-employment income on average and the total workdays you missed due to COVID-19 impacts.
For here instance, the sick leave credit amount is equal to the lesser of $511 USD or all of your average daily self-employment income for a certain number of days where you were unable to work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or 67% of your daily income from self-employment on average.
This is applicable for the days in which you couldn’t perform services because of COVID-19 related circumstances.
Moreover, if you and your spouse are both self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To calculate your Click for more 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 tax credit.