What is the SETC tax credit?
The SETC is federal legislation passed in response to the COVID-19 pandemic. It provides paid sick leave, free COVID-19 testing, food assistance, and unemployment benefits and stipulates employer-provided health insurance protection. For self-employed individuals, it offers equivalent coverage via tax credits that can be claimed on your income tax return, effectively reimbursing you for periods of sick leave due to COVID-19. Qualified taxpayers may be eligible for up to $32,220 in tax credits!
Is the SETC tax credit based on gross self-employed income or net self-employed income?
In order to qualify for the self-employed tax credit you MUST have a positive NET (after deductions) self-employed income for either 2019, 2020 or 2021 AND qualifying COVID days.
Do I qualify for SETC tax credit if I received unemployment benefits during 2020 and/or 2021?
You can still qualify for the SETC tax credit even if you received unemployment benefits. However, you CANNOT claim the days you received unemployment benefits as days you were not able to work due to COVID-19 related issues.
When is the application deadline and how do I apply?
Taxpayers have until 3 years past the original return's filing deadline to claim their SETC credit. This means the final deadline to claim SETC tax credit is April 15, 2024. To apply, schedule an appointment with us today.
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Category | Examples | Collected |
A. Identifiers | Contact details, such as real name, alias, postal address, telephone or mobile contact number, unique personal identifier, online identifier, Internet Protocol address, email address, and account name | |
B. Personal information categories listed in the California Customer Records statute | Name, contact information, education, employment, employment history, and financial information | |
C. Protected classification characteristics under California or federal law | Gender and date of birth | |
D. Commercial information | Transaction information, purchase history, financial details, and payment information | |
E. Biometric information | Fingerprints and voiceprints | |
F. Internet or other similar network activity | Browsing history, search history, online | |
G. Geolocation data | Device location | |
H. Audio, electronic, visual, thermal, olfactory, or similar information | Images and audio, video or call recordings created in connection with our business activities | |
I. Professional or employment-related information | Business contact details in order to provide you our Services at a business level or job title, work history, and professional qualifications if you apply for a job with us | |
J. Education Information | Student records and directory information | |
K. Inferences drawn from other personal information | Inferences drawn from any of the collected personal information listed above to create a profile or summary about, for example, an individual’s preferences and characteristics | |
L. Sensitive Personal Information |
Category B. Personal Information, as defined in the California Customer Records law, such as your name, contact information, education, employment, employment history, and financial information.