Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can find out how in the following details. The SETC Tax Credit amount is determined by your daily self-employment income on average and the total workdays you missed due to COVID-19 effects.
For instance, the sick leave credit amount is equal to the lesser of $511 or 100% of your average daily self-employment income for a set number of days when you couldn’t work due to reasons like quarantine or experiencing COVID-19 symptoms.
On the other hand, the family leave credit amount is the lesser of $200 USD or two-thirds of your average daily self-employment income.
apply for setc tax credit This is applicable for days when you couldn’t perform services due to COVID-19 related reasons.
Moreover, if you and your spouse are both self-employed, you can each claim up to setc tax credit a specified SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility according to self-employment status and COVID-related disruptions, as well as the family leave tax credit.