How to Calculate the SETC Tax Credit

Calculating the SETC Tax Credit Refund

After determining your eligibility for the SETC Tax Credit, the next step is to calculate your potential credit amount.
You can find out how in the following details.  SETC IRS application  is influenced by your average daily self-employment income 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 certain number of days when you were unable to work because of reasons like quarantine or experiencing COVID-19 symptoms.

On the other hand, the family leave credit amount is the lower of $200 USD or two-thirds of your average daily self-employment income.
This applies for days when you couldn’t perform services due to COVID-19 related circumstances.

Moreover, if you and your spouse are self-employed, you can each claim up to a specified SETC Tax Credit limit, as long as you don't share the qualifying days related to COVID.

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.