Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility 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 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 setc tax credit amount is equal to the lower of $511 USD or all of your average daily income from self-employment for a set number of days when you couldn’t work due to reasons like being quarantined or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% of your average daily self-employment income.
This applies for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To calculate your SETC Tax Credit, you would setc tax credit irs use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.