Calculating the SETC Tax Credit

1. Calculating Your SETC Tax Credit Refund Amount After determining your eligibility for the SETC Tax Credit, the next step involves calculating your potential credit amount. You can find out how in the following If you're self-employed and had to care for a child whose school or daycare closed due to COVID-19, the setc tax credit could provide financial relief details. The SETC Tax Credit amount is determined by your daily self-employment income on average and the number of workdays missed because of COVID-19 impacts. For instance, the sick leave credit amount is equal to the lesser of $511 USD or 100% of your average daily self- employment income for a certain number of days when you couldn’t work due to reasons like quarantine or having COVID-19 signs. On the other hand, the family leave credit amount is the lower of $200 USD or 67% of your average daily self- employment income. This applies for days when you were unable to work because of COVID-19 related circumstances. Moreover, if both you and your spouse are self-employed, you can both claim a maximum SETC Tax Credit limit, provided you don't share the qualifying COVID days. To calculate your SETC Tax Credit, you would utilize IRS Form 7202, which takes into account eligibility based on self- employment status and COVID-related interruptions, as well as the family leave tax credit.