Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the apply for setc tax credit subsequent 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 total workdays you missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 or 100% of your average daily self-employment income for a set number of days where you couldn’t work due to reasons like being quarantined or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 or 67% of your daily income from self-employment on average.
This applies for the days what is the setc tax credit in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if both you and your spouse 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 interruptions, as well as the family leave tax credit.