Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step is to calculate your possible refund amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal Find out more to the lesser of $511 or 100% of your average daily self-employment income for a set number of days when you couldn’t work because of reasons like being quarantined or having COVID-19 signs.
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 is applicable for days when you were unable to work because of COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To determine your what is the setc tax credit SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related interruptions, as well as the family leave tax credit.