The Complete Guide to the Self-Employed Tax Credit (SETC)
The Families First Act was signed into law on March 18th, 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 reimbursable sick leave and family leave tax credits known as the Self-Employed Tax Credit (SETC).
What is the SETC?
The SETC stands for the medical leave and family leave tax credit provisions for self-employed workers under the FFCRA. Eligible 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 self-employed (sole owner, independent worker, gig economy worker, etc.) Submitted a Schedule SE for 2020 and 2021 with positive net income and paid taxes as a self-employed individual Were unable to work in 2020/2021 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 provides 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 step-by-step process makes it straightforward to see if you're eligible, compute your credit, and send in 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 reduced by any unemployment benefits you received You must be a US citizen, permanent resident alien, or resident alien
In summary
The SETC is a valuable tax credit for self-employed individuals who lost earnings due to COVID-19 in 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.