Calculating the SETC Tax Credit Refund
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can learn how below. The SETC Tax Credit amount is influenced by your average daily self-employment income and the total workdays you missed because of COVID-19 effects.
For instance, the sick leave credit amount is equal to the lesser of $511 or all of your average setc tax credit daily income from self-employment for a set number of days where you were unable to work due to reasons like quarantine or having COVID-19 signs.
On the other hand, the family leave credit amount is the lower of $200 USD or 67% of your daily income from self-employment on average.
This applies for days when you were unable to work because of COVID-19 related circumstances.
Moreover, if you and your spouse are both self-employed, you can each claim up to a specified SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors what is the setc tax credit in eligibility based on self-employment status and COVID-related interruptions, as well as the family leave tax credit.