Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the next step is to calculate your possible refund 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 impacts.
For instance, the qualified sick leave equivalent amount equates to the lesser of $511 or all of your average daily income from self-employment for a certain number of days when you couldn’t work because of reasons like being quarantined or experiencing COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 USD or two-thirds of your average daily self-employment income.
This applies for Visit website days when you couldn’t perform services due to 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, provided you don't share the read more qualifying days related to COVID.
To calculate your SETC Tax Credit, you would utilize 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.