Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can learn how below. The SETC Tax Credit amount is influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or all of your average daily self-employment income for a set number of days when you couldn’t work due to reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or 67% of your average daily self-employment income.
This applies for the days in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form setc tax credit 7202, setc tax credit irs which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.