Calculating the SETC Tax Credit Refund
Once you've established that you qualify 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 influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 effects.
For instance, the sick leave credit amount is equal to the lower of $511 or all of your average daily self-employment income for a set number of days apply for setc tax credit where you couldn’t work because of reasons like being quarantined or having COVID-19 signs.
On the other hand, the qualified paid family leave equivalent amount setc tax credit is the lower of $200 USD or two-thirds of your daily income from self-employment on average.
This is applicable for the days in which you couldn’t perform services because of COVID-19 related reasons.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying days related to COVID.
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 credit.