A Comprehensive Guide to the Self-Employed Tax Credit (SETC)
The FFCRA was signed into law on March 18th, 2020, giving aid for self-employed workers who weren\'t able to 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 is the paid sick leave and family leave tax benefits for self-employed workers under the FFCRA. Qualified self-employed workers can potentially recover up to $32,220 for both 2020 and 2021.
Who qualifies for the SETC?
You may be eligible if you:
- Work for yourself (sole owner, freelancer, freelance worker, etc.) Have a Schedule SE for 2020 and 2021 with net positive income and paid self-employment tax Weren't able to work in 2020 and/or 2021 due to COVID-19
How is the SETC calculated?
The SETC offers 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 thorough guides on every aspect 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 simple to see if you're eligible, 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 get the full amount if you received wages for sick/family leave Your credit will be reduced by any unemployment benefits received You must be a United States citizen, permanent resident alien, or resident alien
In summary
The SETC is a beneficial tax credit offered to self-employed individuals who had a loss of income due to COVID-19 in 2020-2021. By amending your tax returns, you can possibly recover up to $32,220. For professional guidance and an easy application process, rely on the trusted resources at OfficialSETCRefund at http://officialsetcrefund.com.