Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can find out how in the following details. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed because of COVID-19 effects.
For instance, the sick leave Check over here credit amount equates to the lesser of $511 USD or all of your average daily self-employment income for a Click for more set number of days where you couldn’t work because of reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lesser 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 both you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.