Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating 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 number of workdays missed because of COVID-19 effects.
For instance, the sick leave setc tax credit credit amount equates to the lower of $511 or 100% of your average daily income from self-employment for a certain number of days when you couldn’t work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 or 67% follow this link of your daily income from self-employment on average.
This applies for days when you couldn’t perform services because of COVID-19 related reasons.
Moreover, if both 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 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 interruptions, as well as the family leave tax credit.