Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You can find out how in the following details. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the total workdays you missed because of COVID-19 impacts.
For instance, the sick leave credit amount equates to the lower of $511 USD or all of your average daily self-employment income for a set number of days when you couldn’t work due to reasons like quarantine 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 what is the setc tax credit applies for the days in which you couldn’t perform services 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 days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as well setc tax credit as the family leave tax credit.