Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate your possible refund amount.
You can learn how below. The SETC Tax Credit amount is determined by your average daily self-employment income and the number of workdays missed because of COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 click here or 100% of your average daily income from self-employment for a certain number of days when you were unable to work because of reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or two-thirds of your daily income from self-employment on average.
This is applicable for the days in which you were unable to work because of COVID-19 related reasons.
what is the setc tax credit Moreover, if you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.