Calculating Your SETC Tax Credit Refund Amount
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 daily self-employment income on average and the number of workdays missed due to COVID-19 effects.
For instance, the sick leave credit amount is equal to the lower of $511 or all of your average daily income from self-employment for a set number of days where you were unable to work because of reasons like Additional reading quarantine or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 USD or 67% of your average daily self-employment income.
This applies for days when you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse what is the setc tax credit are both self-employed, you can each 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 IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.