Calculating the SETC Tax Credit Refund
After determining your eligibility 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 officialsetcrefund influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 impacts.
For instance, the sick leave credit amount equates to the lower of $511 or 100% of your average daily self-employment income for a set number of days where you couldn’t work due to reasons like being quarantined or experiencing COVID-19 signs.
On the other hand, the family leave credit amount is the lesser of $200 USD or two-thirds of your daily income from self-employment on average.
This applies for the days in which you were unable to work due to COVID-19 related reasons.
Moreover, if both you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, as long as you do not share the qualifying COVID days.
To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility based on self-employment status and COVID-related interruptions, as well as the family leave credit.