Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment income and the total workdays you missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount equates setc tax credit to the lower of $511 USD or all of your average daily self-employment income for a certain number of days when you were unable to work because of reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% of your average daily self-employment income.
This is applicable for the days in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use what is the setc tax credit IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.