Calculating Your SETC Tax Credit Refund Amount
Once you've setc tax credit 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 average daily self-employment income and the number of workdays missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 USD or 100% of your average daily self-employment income for a certain number of days when you couldn’t work because of reasons like being quarantined or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or 67% of your daily income from self-employment on average.
This is applicable for the days in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based Helpful site on self-employment status and COVID-related interruptions, as well as the family leave tax credit.