Calculating the SETC Tax Credit Refund
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 average daily self-employment income and the number of workdays missed due to COVID-19 impacts.
For instance, the qualified sick leave equivalent amount is equal to the lower of $511 USD or all of your average daily self-employment income for a set number of days where you couldn’t work because of reasons like being quarantined or experiencing COVID-19 signs.
On the other hand, the family leave credit amount Take a look at the site here is the lesser of $200 or two-thirds of your average daily self-employment income.
This applies for the days in which you were unable to work due to COVID-19 related circumstances.
Moreover, if both you and your spouse are self-employed, you can both claim up setc tax credit to a specified SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.
To determine your SETC Tax Credit, you would utilize IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related disruptions, as well as the family leave credit.