How to Calculate the SETC Tax Credit

Calculating the SETC Tax Credit Refund

Once you've established that you qualify for the SETC Tax Credit, the next step involves calculating your possible refund amount.
You can find out how in the following details.  refundable tax credit meaning  is influenced by your daily self-employment income on average and the number of workdays missed due to COVID-19 effects.

For instance, the qualified sick leave equivalent amount equates to the lesser of $511 or all of your average daily income from self-employment for a set number of days when you were unable to work due to 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 USD or 67% of your average daily self-employment income.
This is applicable for the days in which you were unable to work because of COVID-19 related circumstances.

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

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