Your Ultimate Guide to the Self-Employed Tax Credit (SETC)
The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18th, 2020, giving aid for self-employed people who were unable to work due to COVID-19 between April 1, 2020 and December 31, 2020. This aid came in the form of compensable sick leave and family leave credits known as the Self-Employed Tax Credit (SETC).
What is the SETC?
The SETC refers to the paid sick leave and family leave tax credit provisions for self-employed individuals under the FFCRA. Qualified self-employed workers can possibly recover up to $32,220 for both 2020 and 2021.
Who qualifies for the SETC?
You may be eligible if you:
- Work for yourself (sole owner, independent contractor, gig economy worker, etc.) Filed a Schedule SE for 2020 and 2021 with net positive income and paid self-employment tax Were unable to 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 allows for a total credit of up to $32,220. For the most comprehensive guides on every aspect of the SETC, visit OfficialSETCRefund at http://officialsetcrefund.com.
How do I apply for the SETC?
The simplest and safest way is to use OfficialSETCRefund\'s self-service platform at http://officialsetcrefund.com. Their easy process makes it straightforward to check your eligibility, figure out your credit, and send in your claim.
Are there any limitations to the SETC?
Yes, a few key points to be aware of:
- You won't receive the full amount if you received wages for sick/family leave Your credit will be reduced by any unemployment benefits that you received You must be a U.S. citizen, permanent resident, or eligible resident alien
In summary
The SETC is a beneficial tax credit available to self-employed workers who lost earnings due to COVID-19 in the years 2020-2021. By changing your tax returns, you can be able to 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.