Calculating the SETC Tax Credit Refund
Once Learn more here you've established that you qualify for the SETC Tax Credit, the next step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the total workdays you missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 USD or all of your average daily self-employment income for a set number of days when you couldn’t 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 two-thirds of your daily income from self-employment on average.
This applies for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if both you and your spouse are both setc tax credit self-employed, you can each claim up to a specified SETC Tax Credit limit, as long as you do not 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 credit.