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 determined by your average daily self-employment income and the total workdays you missed because of COVID-19 effects.
Home page For instance, the qualified sick setc tax credit leave equivalent amount is equal to the lower of $511 USD or 100% of your average daily self-employment income for a certain number of days when you couldn’t work due to reasons like quarantine 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 daily income from self-employment on average.
This applies for days when you couldn’t perform services because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To calculate 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 as the family leave tax credit.