Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is determined by your daily self-employment income on average and the total workdays you missed because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 USD or 100% of your average daily income from self-employment for a certain number of days when you were unable to work because of reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 or two-thirds of your average daily self-employment income.
This is applicable for days when you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which Have a peek here factors in eligibility according to self-employment status and COVID-related disruptions, as well as the family leave tax credit.