SETC stands for Self-Employment Tax Credit. The FFCRA (Family First Coronavirus Response Act) was amended by the Covid-Related Tax Relief (CARES) Act in 2020 to give us the SETC. Its intent is to help the nation by providing refundable tax credits against net income. These
credits are for qualified sick leave wages the self-employed individual could receive under the Emergency Paid Sick Leave Act of the Emergency Family and Medical Leave Expansion Act.

Yes!

1099/self-employed individuals file the Schedule C and Schedule SE on their 1040 tax returns.

You meet one of the below criteria:
1. You were subject to federal, state, or local quarantine or isolation order.
2. You were advised by a health care provider to self-quarantine.
3. You were experiencing symptoms of COVID-19 and seeking a medical diagnosis.
4. You were waiting results of a diagnostics test or medical diagnosis.
5. You were exposed to COVID-19 or were unable to work pending the results of a test or diagnosis.
6. You were obtaining immunization.
7. You were recovering from any injury, disability, illness, or condition related to such immunization.
8. You were accompanying an individual to obtain immunization.
9. You were caring for an individual who was subject to a federal, state, or local quarantine or isolation order.
10. You were caring for an individual who was advised by a health care provider to self-quarantine.
11. You were caring for a son or daughter because the school or place of care was closed or the childcare provider was unavailable due to COVID-19.

The tax years of 2020 and 2021. Please note, you may use the prior tax year’s self-employment earnings if they are higher to achieve a higher credit. For example, if self-employment earnings are higher in 2019 than 2020, you may use 2019 earning for the credit. Also, if 2020 earnings
are higher than 2021 earnings, you may use 2020 earning for the 2021 credit as well.

$32,200 for an individual caring for another and children or $10,220 for an individual who did not care for others. The amounts are dependent on how many days the individual and dependents were affected by COVID-19 and the average daily wage rate up to a maximum amounts. So, the higher the self-employment earnings were, the higher the potential credit.

4 years after the filing deadline for the respective tax period. So for 2020 the deadline is April 15, 2024. Or, if the original return filing was extended then the expiration is from the October 15 deadline. So, you extended the deadline for 2020 return, the credit would expire on
October 15, 2024.

Yes. However, you may have to reduce your credit if your employer took a FFCRA tax credit on
your behalf.

Yes, although you may not use the same days that were used for the unemployment benefits
with the days used for SETC.

Net. So, if you claimed a lot of expenses, it could lower your potential SETC amount.

Your full individual 1040 tax returns for 2020 and 2021. You may also need 2019 if that tax year’s income in higher than 2020’s.

Following instructions from the IRS, you claim how many days you were affected by COVID-19,
use the IRS formula to calculate the daily credit for each time period using an average wage
rate. Then, you ament your 1040 return (s) requesting the credit.

U.S. citizens, permanent residents, or qualifying resident alients.

April 1, 2020 to 9/30/2021.

Currently, it’s taking up to a month for the IRS to acknowledge receipt of your amended returns. Additionally, it’s taking another 5 months to receive the payments.

We believe the SETC was not well publicized because so much attention was placed on the PPP (Paycheck Protection Program) loan and the ERC (Employee Retention Credit).

No, it’s a credit on taxes already paid so the taxpayer receive a check back from the IRS that does not need to be repaid.