Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating your possible refund amount.
You can find out how in the following details. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed due to COVID-19 impacts.
For instance, the sick leave credit amount is equal to what is the setc tax credit the lower of $511 USD or 100% of your average daily income from self-employment for a certain number of days when you couldn’t work because of reasons like quarantine or having COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower of $200 or two-thirds of your daily income from self-employment on average.
This is applicable for days when you were unable to work due to COVID-19 related circumstances.
Moreover, if you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as setc tax credit irs the family leave credit.