Get ready for a thrilling opportunity with the SETC Tax Credit! You could receive up to an incredible $32,220 based on your self-employment income in 2020 and 2021. Our calculation method is equally exciting! We determine your daily average income and factor in the days you missed work due to COVID-19. This innovative approach allows us to precisely estimate your lost wages, ensuring you get the maximum benefit you deserve!

In response to the COVID-19 crisis, the Families First Coronavirus Response Act (referred to here as SETC) was enacted in March 2020. This pivotal legislation aimed to support businesses in providing paid sick leave and expanded unemployment benefits during the pandemic. Initially, the SETC's primary focus was on aiding companies with W-2 employees to mitigate the financial challenges brought on by the health crisis.

Later, in December 2020, the SETC received a significant extension under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This expansion broadened the scope of the SETC to include not just traditional employers, but also the self-employed sector. Consequently, this extension opened the door for self-employed professionals, freelancers, independent contractors, and gig economy workers to access tax credits. These credits serve as a financial reimbursement for the income lost due to COVID-related disruptions, effectively compensating for the work time affected by the pandemic.

The SETC stands as a federal initiative, introduced as a direct response to the hardships of the COVID-19 pandemic. It encompasses a range of support measures, including provisions for paid sick leave, complimentary COVID-19 testing, food assistance, and enhanced unemployment benefits, along with ensuring protection for employer-provided health insurance. Crucially, for self-employed individuals, the SETC extends its benefits through tax credits. These credits can be claimed on your annual income tax returns, offering a form of compensation for periods when COVID-19 may have impacted your ability to work.

Even if you are a W2 employee, you might still qualify for SETC tax credits, especially if you have earned income from self-employment during 2020 and/or 2021. However, if you're a W2 employee and your employer has already claimed FFCRA credits for you, this could reduce the amount of credit you're eligible for due to the FFCRA wages paid on your behalf.

As an employee receiving paid leave benefits, this could impact the level of tax credit you're entitled to as a self-employed individual under the SETC. It's important to note that you cannot claim the same benefits twice for the same time-period. Nonetheless, if the benefits you receive as an employee do not fully cover your needs, there may be an opportunity to claim additional credits, reflecting your self-employment earnings.