Calculating Your SETC Tax Credit Refund Amount
Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your potential credit amount.
You can find out how in the following details. The SETC Tax Credit amount is influenced by your average daily self-employment income and the number of workdays missed because of COVID-19 effects.
For instance, the sick leave credit amount equates to the lesser of $511 USD or all of your average daily income from self-employment for a set number of days when you were unable to work due to reasons like quarantine or having COVID-19 symptoms.
On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% of your average daily self-employment income.
This applies for the days in which you were unable to work because of COVID-19 related circumstances.
Moreover, if both you and your spouse are both self-employed, you can both claim a maximum Click here for more SETC Tax Credit limit, as long as you don't share the qualifying COVID days.
To determine your SETC Tax Credit, you would use IRS Form 7202, which takes into account eligibility based on self-employment setc tax credit status and COVID-related disruptions, as well as the family leave credit.