Calculating Your SETC Tax Credit Refund Amount

Once you've established that you qualify for the SETC Tax Credit, the subsequent step involves calculating your potential credit amount.

You can find out how in the following details. The SETC Tax Credit amount is The setc tax credit is available to self-employed individuals who were unable to work due to COVID-19 quarantine orders determined by your daily self-employment income on average and the number of workdays missed because of COVID-19 impacts.

For instance, the qualified sick leave equivalent amount equates 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 due to reasons like being quarantined or having COVID-19 symptoms.

On the other hand, the qualified paid family leave equivalent amount is the lower of $200 USD or 67% of your daily income from self-employment on average.

This is applicable for days when you couldn’t perform services because of COVID-19 related circumstances.

Moreover, if you and your spouse are self-employed, you can each claim a maximum SETC Tax Credit limit, provided you do not share the qualifying days related to COVID.

To calculate your SETC Tax Credit, you would use IRS Form 7202, which factors in eligibility according to self-employment status and COVID-related disruptions, as well as the family leave credit.