Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your possible refund amount.
You can learn how below. 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 is equal to the lower of $511 USD or 100% of your average daily self-employment income for a set number of days where you were unable to work due to reasons like quarantine or experiencing COVID-19 signs.
On the other hand, the family leave Click for more info credit 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 were unable to work due to COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, Website link as long as you don't share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.