Introducing the Self-Employment Tax Credit
The Self-Employment Tax Credit (SETC) is designed to provide financial support to self-employed professionals, including freelancers, proprietors, and independent contractors.
What are Self-Employed Tax Credits (SETCs)?
Self-Employed Tax Credits (SETCs) are provisional sick and family leave tax credits for self-employed individuals, introduced under the Families First Coronavirus Response Act (FFCRA) in March 2020.
The FFCRA (Public Law No. 116-127) provides self-employed individuals with tax credits that reimburse them, dollar for dollar, for the cost of being unable to work due to COVID-related issues.
Key Points at a Glance
Provide Up to $32,220 Per Self-Employed Individual: Based on Sick Leave Equivalent and Family Leave Equivalent Amounts.
Apply to Q2 (2020) through Q3 (2021) with up to 20 sick leave days and 110 family leave days. may be claimed retroactively for a limited time. The deadline is April 15, 2025.
Identify as a Self-Employed Individual: (e.g., Sole Proprietor, Freelancer, Independent Contractor, or Gig Worker).
Filed a Schedule SE (IRS Form 1040) for 2020 or 2021 and reported a positive net income. Unable to work or telework in 2020 or 2021 due to a COVID-Related Issue
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