The Self-Employed Tax Credit (SETC) is a significant financial relief program established under the Families First Coronavirus Response Act (FFCRA) to support self-employed workers 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.
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.
The SETC tax credit can provide substantial financial relief to self-employed workers:
Claiming the SETC tax credit entails amending your 2020 and/or 2021 tax returns:
Many self-employed individuals opt to work with a tax professional to ensure accuracy and maximize their credit. https://officialsetcrefund.com/apply/ charge a processing fee plus a percentage of the credit received.
The deadlines for claiming the SETC tax credit are:
It’s important to file amended returns claiming the SETC before these deadlines to receive your credits.
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 offer 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 explore this valuable opportunity.