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 workers who could not work due to COVID-19 from April 1, 2020 to December 31, 2020. This aid came in the form of refundable sick leave and family leave tax relief known as the Self-Employed Tax Credit (SETC).

What is the SETC?

The SETC refers to the sick leave and family leave tax credit provisions for self-employed individuals under the FFCRA. Eligible self-employed individuals can possibly recover up to $32,220 for both 2020 and 2021.

Who qualifies for the SETC?

You may be able to apply if you:

Work for yourself (sole proprietor, independent worker, gig worker, etc.) Have a Schedule SE for 2020 and 2021 with positive net income and paid taxes as a self-employed individual Weren't able to work in 2020 and/or 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 maximum credit of $32,220. For the most complete 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 simple process makes it easy 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 already received wages for sick/family leave Your credit will be reduced by any unemployment benefits you received You must be a U.S. citizen, permanent resident, or resident alien

In summary

The SETC is a valuable tax credit offered to self-employed workers who lost income due to COVID-19 in the period of 2020-2021. By updating your tax returns, you can be able to recover up to $32,220. For expert guidance and an easy application process, rely on the expert resources at OfficialSETCRefund at http://officialsetcrefund.com.