The Complete Guide to the Self-Employed Tax Credit (SETC)
The FFCRA was signed into law on March 18, 2020, giving aid for self-employed people who could not work due to COVID-19 between April 1, 2020 and December 31, 2020. This relief 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 stands for the sick leave and family leave tax credit provisions for self-employed people under the FFCRA. Qualified self-employed workers can be able to recover up to $32,220 for both 2020 and 2021.
Who qualifies for the SETC?
You may be able to apply if you:
- Are a self-employed individual (sole proprietorship, independent worker, gig economy worker, etc.) Have a Schedule SE for 2020 and 2021 with positive net income and paid self-employment taxes Weren\'t able to work in 2020 and/or 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 offers 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 simplest and safest way is to use OfficialSETCRefund's self-service platform at http://officialsetcrefund.com. Their step-by-step process makes it easy to determine your eligibility, 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 be eligible for the full amount if you received wages for sick/family leave Your credit will be decreased by any unemployment benefits received You must be a United States citizen, green card holder, or qualifying resident alien
In summary
The SETC is a important tax credit for self-employed people who lost earnings due to COVID-19 in the years 2020-2021. By amending your tax returns, you can possibly recover up to $32,220. For expert help and an easy way to apply, rely on the trusted resources at OfficialSETCRefund at http://officialsetcrefund.com.