The Complete Guide to the Self-Employed Tax Credit (SETC)
The Families First Act was signed into law on March 18, 2020, offering assistance for self-employed workers who were unable to work due to COVID-19 from April 1, 2020 to December 31, 2020. This relief came in the form of reimbursable sick leave and family leave tax relief known as the Self-Employed Tax Credit (SETC).
What is the SETC?
The SETC is the sick leave and family leave tax credit provisions for self-employed workers under the FFCRA. Eligible self-employed workers can possibly recover up to $32,220 for the combined years of 2020 and 2021.
Who qualifies for the SETC?
You may be able to apply if you:
- Work for yourself (sole proprietorship, independent worker, freelance worker, etc.) Filed a Schedule SE for the years 2020 and 2021 with a positive net income and paid taxes as a self-employed individual Could not work in the years 2020 and 2021 due to COVID-19
How is the SETC calculated?
The SETC gives 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 offers a total potential credit of $32,220. For the most thorough guides on every aspect 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 simple process makes it simple to check your eligibility, compute your credit, and file your claim.
Are there any limitations to the SETC?
Yes, a few key things to be aware of:
- You won't get the full amount if you already received wages for sick/family leave Your credit will be decreased by any unemployment benefits you received You must be a U.S. citizen, green card holder, or eligible resident alien
In summary
The SETC is a beneficial tax credit offered to self-employed workers who lost income due to COVID-19 in the period of 2020-2021. By amending your tax returns, you can be able to recover up to $32,220. For professional guidance and an simple application process, trust the expert resources at OfficialSETCRefund at http://officialsetcrefund.com.