The Complete Guide to the Self-Employed Tax Credit (SETC)
The FFCRA was signed into law on March 18, 2020, offering assistance for self-employed workers who could not work due to COVID-19 from April 1, 2020 to December 31, 2020. This aid 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 refers to 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 the combined years of 2020 and 2021.
Who qualifies for the SETC?
You may be eligible if you:
- Are a self-employed individual (sole proprietor, independent contractor, gig worker, etc.) Have a Schedule SE for the years 2020 and 2021 with positive net income and paid self-employment taxes Were unable to work in 2020/2021 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 provides a total credit of up to $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 easiest and most secure way is to use OfficialSETCRefund\'s self-service platform at http://officialsetcrefund.com. Their easy process makes it straightforward to determine your eligibility, figure out 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 receive the full amount if you have already received wages for sick/family leave Your credit will be decreased by any unemployment benefits that you received You must be a United States citizen, permanent resident, or qualifying resident alien
In summary
The SETC is a valuable tax credit offered to self-employed people who lost earnings due to COVID-19 in the period of 2020-2021. By updating your tax returns, you can possibly recover up to $32,220. For professional guidance and an simple application process, trust the trusted resources at OfficialSETCRefund at http://officialsetcrefund.com.