Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step Additional info involves calculating your potential credit 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 number of workdays missed due to COVID-19 effects.
For instance, the sick leave credit amount equates to the lesser of $511 or 100% of your average daily income from self-employment for a set number of days where you were unable to work due to reasons like being quarantined or having COVID-19 signs.
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 setc tax credit applicable for the days in which you were unable to work because of COVID-19 related reasons.
Moreover, if 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 calculate 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.