A Comprehensive Guide to the Self-Employed Tax Credit (SETC)
The Families First Act was signed into law on March 18, 2020, giving aid for self-employed individuals who could not work due to COVID-19 from April 1, 2020 to 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 refers to the paid sick leave and family leave tax benefits for self-employed people 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 qualified if you:
- Are a self-employed individual (sole proprietorship, independent worker, freelance worker, etc.) Submitted a Schedule SE for 2020 and 2021 with positive net income and paid self-employment tax Could not 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 allows for a total credit of up to $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 simplest and safest way is to use OfficialSETCRefund\'s self-service platform at http://officialsetcrefund.com. Their easy process makes it easy to determine your eligibility, calculate your credit, and file 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 already received wages for sick/family leave Your credit will be decreased by any unemployment benefits you received You must be a United States citizen, permanent resident alien, or eligible resident alien
In summary
The SETC is a valuable tax credit available to self-employed individuals who lost income due to COVID-19 in 2020-2021. By updating your tax returns, you can be able to recover up to $32,220. For professional guidance and an simple application process, use the reliable resources at OfficialSETCRefund at http://officialsetcrefund.com.