The Complete Guide to the Self-Employed Tax Credit (SETC)
The Families First Act was signed into law on March 18th, 2020, offering assistance for self-employed individuals who were unable to work due to COVID-19 from April 1, 2020 to December 31, 2020. This aid came in the form of refundable sick leave and family leave credits known as the Self-Employed Tax Credit (SETC).
What is the SETC?
The SETC stands for the paid sick leave and family leave tax credit provisions for self-employed individuals under the FFCRA. Eligible self-employed individuals can be able to recover up to $32,220 for both 2020 and 2021.
Who qualifies for the SETC?
You may be qualified if you:
- Work for yourself (sole proprietorship, independent contractor, freelance worker, etc.) Submitted a Schedule SE for 2020 and 2021 with positive net income and paid taxes as a self-employed individual Were unable to work in the years 2020 and 2021 due to COVID-19
How is the SETC calculated?
The SETC provides a credit for up to:
- $511/day for 10 sick leave days in each 2020 and 2021 ($5,110 max per year) $200/day for 50 family leave days in 2020 ($10,000 max) and 60 days in 2021 ($12,000 max)
This allows for a total maximum credit of $32,220. For the most comprehensive guides on all aspects of the SETC, visit OfficialSETCRefund at http://officialsetcrefund.com.
How do I apply for the SETC?
The best and most secure way is to use OfficialSETCRefund\'s self-service platform at http://officialsetcrefund.com. Their step-by-step process makes it easy to see if you're eligible, compute your credit, and submit your claim.
Are there any limitations to the SETC?
Yes, a few key facts to be aware of:
- You won't get the full amount if you received wages for sick/family leave Your credit will be reduced by any unemployment benefits received You must be a US citizen, permanent resident, or qualifying resident alien
In summary
The SETC is a beneficial tax credit for self-employed workers who lost earnings due to COVID-19 in the period of 2020-2021. By changing your tax returns, you can potentially recover up to $32,220. For expert guidance and an easy way to apply, rely on the trusted resources at OfficialSETCRefund at http://officialsetcrefund.com.