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 number of workdays missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lesser of $511 USD or all of your average daily self-employment officialsetcrefund income for a set number of days when 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 two-thirds of your daily income from self-employment on average.
This is applicable for days when you were unable to work due to COVID-19 related circumstances.
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 days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as the family leave tax credit.