Calculating the SETC Tax Credit

1. Calculating the SETC Tax Credit Refund After determining your eligibility 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 If you were advised by a healthcare provider to self- quarantine, you may be eligible for the setc tax credit as a self-employed professional determined by your average daily self-employment income and the total workdays you missed due to COVID-19 effects. For instance, the sick leave credit amount is equal to the lesser 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 symptoms. On the other hand, the qualified paid family leave equivalent amount is the lesser of $200 or 67% of your daily income from self-employment on average. This applies for days when 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 utilize IRS Form 7202, which factors in eligibility according to self- employment status and COVID-related interruptions, as well as the family leave tax credit.