Calculating the SETC Tax Credit Refund
After determining your eligibility for the SETC Tax Credit, the subsequent step is to calculate 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 Check out the post right here the total workdays you missed because of COVID-19 impacts.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 or 100% of your average daily income from self-employment for a certain number of days when you were unable to work due to reasons like quarantine or having 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 applies for days when you were unable to work because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
Click here! 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 tax credit.