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The Self-Employment Tax Credits (SETC) are the Emergency Paid Sick Leave Act (EPSLA) and Expanded Family Medical Leave Act (Expanded FMLA) tax credits authorized under the American Rescue Plan (ARP). These self-employment tax credits (SETC) are designed to provide self-employed individuals with the relief they would have been entitled to, had they worked for a qualified W2 employer, for enduring disruptions in their work due to the pandemic. These credits can be highly beneficial for those who had to care for children or dependents, leading to lost work time and income.
Contact Pinnacle Minds for more information about applying for Self-Employment Tax Credits!
There are multiple benefits to applying for the SETC, including but not limited to:
Self-Employment Tax Credits could help increase your tax refund or even lower any current tax debts you may have, as long as you claimed Schedule C income in 2020 and/or 2021.
If you qualify for the SETC, you could receive up to $32,220 of unrestricted funds, which you can use to put toward living expenses, debts you incurred due to lost work during the pandemic, or any other expense you may need funding for.
SETC funds can act as a safety net if your finances are still bouncing back post-pandemic, protecting your business in uncertain economic times.
Working with Smart SETC, a company with nearly two decades of experience, can provide you access to our knowledgeable team of former IRS Auditors, who work with you to claim all the tax credits you’re entitled to.
Access to the 2020 SETC will expire soon, and the 2021 SETC expires on April 15, 2025. Due to the ever-changing political landscape, there is also a chance that the SETC program could end prematurely. So don’t miss your opportunity to work with the former Tax Auditors at Smart SETC and claim those valuable tax credits in full now!
If you’re self-employed, every dollar counts… especially during difficult economic times. Self-Employment Tax Credits can act as a financial lifeline for people who worked for themselves during the COVID-19 pandemic of 2020 and 2021. Learn even more about Self-Employment Tax Credits by speaking with a former IRS Auditor at Smart SETC today!
What are the SETC tax credits?
The Self-Employment Tax Credits (SETC) are the Emergency Paid Sick Leave Act (EPSLA) and Expanded Family Medical Leave Act (Expanded FMLA) tax credits authorized under the American Rescue Plan (ARP). These self-employment tax credits (SETC) are designed to provide self-employed individuals with the relief they would have been entitled to, had they worked for a qualified W2 employer, for enduring disruptions in their work due to the pandemic. These credits can be highly beneficial for those who had to care for children or dependents, leading to lost work time and income.
What is the FFCRA?
The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18, 2020, in response to the economic impact of the pandemic. It mandated employers to provide paid sick leave to employees affected by the pandemic and provided tax credits for doing so. It also allows self-employed individuals to claim these tax credits, which many people have not yet done.
Who qualifies for the SETC?
You can qualify for the SETC if:
What tax documents do I have to upload?
You need to provide your unaltered tax returns for 2019, 2020, and 2021.
Who is considered self-employed?
You are considered self-employed if you’re a sole proprietor, 1099 subcontractor, single-member LLC, freelancer, independent contractor, gig worker, etc.
Can I claim the SETC if all my income was reported on a W2?
No, the SETC does not apply to people that solely have W2 employment nor to any employment that issued you a W2.
Are Self-Employment Tax Credits a loan or a grant?
The SETC is not a loan or a grant; it’s a tax credit. You don’t pay it back, and you don’t pay taxes on it.
How much can I expect to get from the SETC?
The average funding is around $17,000 out of the maximum $32,220. This amount depends on your income level and how many days the pandemic impacted your work. People with dependents also are eligible to claim more SETC on average.
How can I claim the SETC?
To claim the SETC, you will have to amend your tax returns for 2020/2021. The skilled former IRS Auditors at Smart SETC can help you through the process, including creation of applicable forms and assistance in filing.
Is there a lot of paperwork to do?
Not at all. For Smart SETC to file on your behalf, all you need to do is: