Frequently Asked Questions
Here are ten of the most popular questions clients ask us about the Self-Employed Tax Credit. If you have a specific question in mind, please do not hesitate to contact us below.
Yes, eligibility for this tax credit is specifically tailored to self-employed individuals, including small business owners, freelancers, and 1099 contractors.
To apply, simply follow the link that you were provided to setcpros.com. The application process is very easy and only takes about 5 minutes.
The Sick and Family Leave Tax Credit is a financial support measure designed for self-employed individuals and 1099 workers, created under the Families First Coronavirus Response Act (FFCRA). This legislation enables eligible individuals (gig workers, 1099, small business owners, certain partnerships, etc.…) to claim a refundable tax credit. Since its creation, this historic tax credit was specifically aimed at providing relief for those unable to work or telework due to certain circumstances related to COVID-19.
Key aspects of this tax credit include:
(1) Qualified Sick Leave Credit:
It covers up to 100% of qualified sick leave equivalent amounts, subject to a maximum of $511 per day.
The calculation is based on the lesser of $511 per day or 100% of the individual's average daily self-employment income.
This applies to days when an individual was unable to work due medically recommended or government ordered quarantine and/or isolation due to COVID-19, personally experiencing symptoms and seeking a diagnosis, or caring for someone under quarantine or with symptoms of COVID-19.
(2) Qualified Family Leave Credit:
The credit also extends to qualified family leave, covering up to 67% of the average daily self-employment income, with a maximum benefit of $200 per day.
This is applicable for days when an individual could not work because they were required to care for a child whose school or care facility was closed due to COVID-19.
These credits were established as part of broader effort by Congress to provide financial support to those impacted by the pandemic, acknowledging the unique challenges faced by self-employed individuals and independent contractors.
You will not need to upload any documents. We retrieve your records electronically from the IRS so that we may provide you with a quote. The only item you will need is your ID, as the system will require an ID verification to ensure that nobody else can apply for you except you.
Generally you need to have filed a tax return with a Schedule C, as all self employed people do. As long as you have a positive net income you should qualify for the program. Once you click through and fill out the basic fields, the system will qualify you.
Perfect, you’re all set. Now, simply visit our qualification form above, honestly answer the questions, and our technology will retrieve your past year’s tax data from the IRS. Once that information is received, we will provide you with your realized, maximum tax benefit under this program. Our process only takes a few minutes to complete. Best of all, checking your eligibility is 100% free.
Our proprietary process eliminates the need to upload any tax documents. Our significant corporate partnerships allow SETC Pros to securely retrieve your pertinent tax data from the IRS at no expense to you.
There is No Cost to Apply, and it only takes a few minutes to complete your SETC refund application. Another advantage to applying through SETC Pros is our proprietary process that eliminates the need to upload any tax documents. Once you’ve submitted your application, we typically receive your IRS data within about three to five business days and will calculate your SETC refund amount.
Once your SETC refund amount is calculated, please look to receive an official notice with your total maximum SETC refund amount. Included will be a banking information request so that we can debit your account for our fee AFTER you receive your SETC refund from the IRS. Alternately, if you’d prefer to use a charge card this is acceptable. If you owe back taxes in the amount of $500 or more, we will send you a pre-paid invoice to pay our fee.
Next, you will receive an email to log into your SETC Pros Customer Portal to access and print your necessary IRS forms to be completed, signed and mailed to the IRS via the Post Office (USPS). Once received by the IRS, processing typically takes between four (4) and sixteen (16) weeks.
Please note, per recent IRS information, the 2021 refund will be issued by direct deposit.
Those who qualify for the SETC program can claim up to $32,200.
YES. As long as you had any self-employment income in either 2020 or 2021 and you had a Schedule C on your tax return, then you likely have money waiting that you are entitled to. Please apply so you can claim it.
YES. If you had Zero positive business income on your Schedule C, or a loss, in 2021, then you likely will not qualify for the SETC. Please take a look at your Schedule C from your taxes and check line 29 or 31 or Net Profit or Loss… If that number is a zero or a negative, then you would not qualify for anything under the SETC. If you see a positive number at the bottom of your Schedule C, then please email us the image of that Schedule C and we will look into that further.
If you have any questions or need assistance at any point during the process, please know that we are here to support you. Our dedicated team is always ready and available to help with any inquiries or concerns you might have. You can easily reach out to us through our designated contact channels, and we'll ensure that you receive the necessary guidance and clarification. We're committed to making this process as smooth and understandable as possible for you.
No, there are no upfront fees when you choose SETC Pros. Checking your eligibility and official maximum SETC refund amount is 100% free. We are dedicated to making our services as accessible and hassle-free as possible.
Our fee structure is designed so that charges are only applied AFTER you have successfully received your Self-Employed Tax Credit Refund. Yes, for those who owe nothing in back taxes, we simply deduct our fee from your bank AFTER your funds are direct deposited into your bank account by the IRS. To ensure security and client privacy, SETC Pros has proudly partnered with Stripe® to obtain and transmit all payment information.
If you do owe back taxes, don’t worry, SETC Pros will provide you with various payment options to help you clean up some, or hopefully all, of those burdensome back taxes. In many cases, we can completely eliminate any back taxes owed and still put funds into our client’s pockets. We absolutely love being a part of our client’s financial success stories.
YES. As long as you had any self-employment income in either 2020 or 2021 and you had a Schedule C on your tax return, then you likely have money waiting that you are entitled to. Please apply so you can claim it.
Any self employment income qualifies, as long as it shows on your Schedule C from your tax returns from 2020 or 2021. Our system will check that for you and insure you receive all monies you are entitled to.
Yes. We are currently helping taxpayers claim the SETC for the 2021 tax year. The deadline to file an amended 2021 tax return to claim the SETC is April 15, 2025.
We do all the work for you. The only thing you need to do is complete the application including ID verification. Then after we prepare your final documents, you will receive exact instructions to sign and send those directly to the IRS so they may process your refund and disperse to you.
YES. After May 17, 2024, the ability to claim part of this credit from the 2020 tax year will depend on each person’s prior filing date and each person’s missed days of work due to covid restrictions & quarantine.
No. The credit for 2020 and 2021 must be claimed prior to any deadlines.
The amount of your Self-Employed Tax Credit is determined based on a combination of key factors, including:
(1) Net Income: Your net business income, as reported on Schedule C of your 2020, and/or 2021 tax returns, is a critical factor. This provides a baseline for calculating your maximum potential credit. Per IRS guidelines, you may use the greater of your net business income for the tax year in which the credit is claimed or that of the previous year. Thus, for tax year 2021, you may use the greater of 2020 or 2021 to establish your maximum daily benefit. Our proprietary AI driven software quickly identifies which combination is most advantageous for you in every instance.
(2) Sick Days and/or Quarantine: The number of days you were unable to work due to being sick, medically quarantined, and/or under governmental isolation or quarantine orders due to COVID-19 will directly impact the calculation.
(3) Caregiving Duration: If you spent time caring for an individual affected by COVID-19, the duration of this caregiving is considered.
(4) School or Daycare Closures: The length of time you needed to care for a minor child because their school or daycare center was closed due to COVID-19 is also a factor.
Checking your official maximum refund amount with SETC Pros is always 100% free of charge. Our process only takes minutes to complete, and submissions are confidential.
Yes, if both the taxpayer and their spouse have self-employed income, they are both eligible to claim the Self-Employment Tax Credit individually. It's crucial to understand, though, that they cannot overlap or share qualifying COVID-related days for which they claim the credit. Each individual's claim must be based on their own specific circumstances and periods of inability to work due to COVID-19.
For those clients who are interested, SETC Pros has partnered with several national lending partners, via TurboFi, offering loan options to unlock the freedom of your newfound funds within days. Many of our clients choose this option, rather than waiting up to sixteen (16) weeks for the IRS to process their file. Once the funds are received, you can either: (1) choose to pay any loan off in full or (2) simply continue making the monthly payment and use your refund for other purposes.