Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential credit amount.
You can learn how below. The SETC Tax Credit amount is determined by your daily self-employment income on average and the total workdays you missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 USD or all of your what is the setc tax credit average daily income from self-employment for a Look at more info certain number of days when you couldn’t work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% 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 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 factors in eligibility according to self-employment status and COVID-related interruptions, as well as the family leave credit.