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Self-Employment Tax Credit (SETC)

What Is the Self-Employed Tax Credit (SETC)?

The Self-Employed Tax Credit (SETC) refers to the sick leave and family leave tax credit provisions for self-employed individuals introduced under the FFCRA. The SETC allows qualified self-employed workers to recover up to $32,220 for 2020 and 2021.

Qualified Sick Leave Equivalent Amount

The qualified sick leave equivalent amount applies to self-employed individuals who are unable to work or telework due to:

  • being subject to a federal, state, or local quarantine or isolation order due to COVID-19,

  • being advised by a healthcare provider to self-quarantine due to COVID-19, or

  • experiencing COVID-19-related symptoms and seeking a medical diagnosis.

Under the Emergency Paid Sick Leave Act (EPSLA) provision of the FFCRA, individuals may claim the lesser of $511 per day or 100% of their average daily self-employment income per day. A total of 20 days may be considered: 10 days for the period between April 1, 2020, and March 31, 2021, and 10 days for the period between April 1, 2021, and September 30, 2021.

Qualified Family Leave Equivalent Amount

The qualified family leave equivalent amount applies to self-employed individuals who are unable to work or telework due to:

  • caring for an individual who is subject to a quarantine or isolation order related to COVID-19, or

  • caring for a child if their school is closed or childcare provider is unavailable due to COVID-19.

Under the expanded Family and Medical Leave Act (FMLA) provision of the FFCRA, individuals may claim the lesser of $200 per day or 67% of their average daily self-employment income per day. A total of 110 days may be considered: 50 days for the period between April 1, 2020, and March 31, 2021, and 60 days for the period between April 1, 2021, and September 30, 2021.

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