Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.
You can find out how in the following details. The SETC Tax Credit amount is determined by your average daily self-employment income and the number of workdays missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 or all of your average daily self-employment income for a set setc tax credit irs number of days when you couldn’t work because of reasons like being quarantined or having COVID-19 signs.
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 applies for the days in which you were unable to work due to COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as setc tax credit well as the family leave tax credit.