Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the total workdays you missed due to COVID-19 impacts.
For instance, the sick leave credit amount equates to the lesser of $511 USD what is the setc tax credit or 100% of your average daily income from self-employment for a set 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 USD or 67% of setc tax credit your daily income from self-employment on average.
This is applicable for the days in which you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, provided you do not share the qualifying COVID days.
To determine 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.