Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your Click here for more info average daily self-employment income and the number of workdays missed because of COVID-19 effects.
For instance, the sick leave credit amount equates to the lower of $511 USD or all Informative post of your average daily income from self-employment for a set number of days where you couldn’t work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lower of $200 or 67% of your average daily self-employment income.
This is applicable for the days in which you were unable to work because of COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To determine 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.