The Self-Employed Tax Credit (SETC) refers to the provisional sick and family leave tax credits for self-employed individuals introduced under the FFCRA in March 2020.

• Receive up to $32,220 per Self-Employed Individual Calculated from Sick Leave and Family Leave Equivalent Amounts.
• Coverage Period: Q2 2020 to Q3 2021 Eligible for up to 20 Sick Leave Days and 110 Family Leave Days.
• Claim Before It’s Too Late Deadline is April 15, 2025.

Self-employed individuals who were unable to work or telework in 2020 or 2021 due to COVID-19 are likely eligible for the SETC tax credits introduced by the FFCRA.

• Self-Employed Status: Must be a self-employed individual, including sole proprietors, freelancers, independent contractors, or gig workers.
• Tax Filing Requirement: Filed a Schedule SE (IRS Form 1040) for either 2020 or 2021, with a positive net income reported.
• COVID-19 Impact: Unable to work or telework due to a COVID-related reason in 2020 or 2021.

Whether you’re a freelancer, consultant, or sole proprietor, the SETC Program is designed to provide financial relief tailored specifically for self-employed individuals affected by the COVID-19 pandemic. By meeting the following criteria, you can unlock the tax benefits available through this program:

• You must have been self-employed in 2020 or 2021. This includes sole proprietors, freelancers, independent contractors, and gig workers.
• You must have been unable to work or telework due to COVID-19-related reasons such as quarantine, self-isolation, caregiving responsibilities, or experiencing symptoms.
• You must have filed a Schedule SE (IRS Form 1040) for the tax years 2020 or 2021, reported a positive net income, and paid self-employment taxes.

It’s important to note that certain business structures like S Corps and C Corps are not eligible for the SETC. Ensure that your business structure qualifies before applying.