Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.
You can find out how in the following Find out more details. 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 effects.
For instance, the sick leave credit amount equates to the lower of $511 USD or 100% of your average daily income from self-employment for a set number of days when you were unable to work due to 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 two-thirds of your average daily self-employment income.
This is Look at this website applicable for days when you couldn’t perform services due to COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can both claim up to a specified SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.