Your Ultimate Guide to the Self-Employed Tax Credit (SETC)
The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18, 2020, providing relief for self-employed workers 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 benefits for self-employed individuals under the FFCRA. Eligible self-employed individuals can potentially recover up to $32,220 for 2020-2021 combined.
Who qualifies for the SETC?
You may be able to apply if you:
- Are self-employed (sole proprietor, independent worker, gig economy worker, etc.) Submitted a Schedule SE for 2020/2021 with positive net income and paid self-employment tax Could not work in the years 2020 and 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 potential credit of $32,220. For the most thorough 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 simple process makes it straightforward to check your eligibility, figure out your credit, and submit your claim.
Are there any limitations to the SETC?
Yes, a few key things to be aware of:
- You won't be eligible for the full amount if you have 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 beneficial tax credit available to self-employed people who had a loss of income due to COVID-19 in the years 2020-2021. By updating your tax returns, you can possibly recover up to $32,220. For expert help and an easy application process, trust the expert resources at OfficialSETCRefund at http://officialsetcrefund.com.