Introduction

The Self-Employed Tax Credit (SETC) is a valuable financial relief program introduced under the Families First Coronavirus Response Act (FFCRA) to support self-employed people impacted by the COVID-19 pandemic. The SETC provides refundable tax credits of up to $32,220 for eligible self-employed workers who were unable to work due to COVID-related circumstances in 2020 and 2021.

SETC Tax Credit Eligibility Requirements

To qualify for the SETC tax credit, you must:

If you have both self-employment income and W-2 earnings, you may still be eligible, but your SETC will be adjusted to prevent double-dipping if you received paid leave benefits through your employer under the FFCRA.

SETC Tax Credit Benefits

The SETC tax credit can provide substantial financial relief to self-employed individuals:

How to Claim the SETC Tax Credit

Claiming the SETC tax credit entails amending your 2020 and/or 2021 tax returns:

Many self-employed workers opt to work with a tax professional to ensure accuracy and maximize their credit. https://officialsetcrefund.com/learn/qualify-for-self-employed-tax-credit/ charge a processing fee plus a percentage of the credit received.

SETC Tax Credit Deadlines

The deadlines for claiming the SETC tax credit are:

It is important to file amended returns claiming the SETC before these deadlines to receive your credits.

Conclusion

The Self-Employed Tax Credit gives much-needed financial support to self-employed workers whose livelihoods were disrupted by the COVID-19 pandemic. If you qualify based on the eligibility criteria, amending your 2020 and 2021 tax returns to claim the SETC can give substantial tax relief of up to $32,220. With the April 15, 2024 deadline approaching for 2020 credits, now is the time for self-employed workers to look into this valuable opportunity.