Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent 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 because of COVID-19 effects.
For instance, the sick leave credit amount is equal to the what is the setc tax credit lesser of $511 USD or all of your average daily self-employment income for a certain number of days where you were unable to work setc tax credit irs due to reasons like being quarantined or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 USD or two-thirds of your daily income from self-employment on average.
This is applicable for days when you were unable to work because of COVID-19 related circumstances.
Moreover, if you and your spouse are self-employed, you can both claim up to a specified SETC Tax Credit limit, as long as you do not 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 interruptions, as well as the family leave tax credit.