Calculating Your SETC Tax Credit Refund Amount
After determining your eligibility for the SETC Tax Credit, the subsequent step involves calculating 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 setc tax credit workdays you missed due to COVID-19 effects.
For instance, the qualified sick leave equivalent amount equates to what is the setc tax credit the lower of $511 USD or 100% of your average daily self-employment income for a certain number of days where you were unable to work because of reasons like being quarantined 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.
This is applicable for the days in which you couldn’t perform services due to COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can both claim up to a specified SETC Tax Credit limit, provided you don't share the qualifying COVID days.
To calculate 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 credit.