A Comprehensive Guide to the Self-Employed Tax Credit (SETC)

The FFCRA was signed into law on March 18th, 2020, offering assistance for self-employed individuals who could not work due to COVID-19 from April 1, 2020 to December 31, 2020. This aid came in the form of compensable sick leave and family leave tax relief known as the Self-Employed Tax Credit (SETC).

What is the SETC?

The SETC is the medical leave and family leave tax credit provisions for self-employed people under the FFCRA. Eligible self-employed individuals can potentially 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 owner, freelancer, gig worker, etc.) Filed a Schedule SE for 2020/2021 with positive net income and paid taxes as a self-employed individual 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 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 easiest and most secure way is to use OfficialSETCRefund's self-service platform at http://officialsetcrefund.com. Their easy process makes it simple to check your eligibility, calculate your credit, and send in 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 U.S. citizen, permanent resident, or resident alien

In summary

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