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Were You Self-Employed During Covid?

You may be eligible for up to $32,220 from the IRS. Claim Self-Employed Tax Credit (SETC), under the FFCRA. We built the tool to help you get the tax credits that you deserve – safely, quickly, and easily. 

Find out if you qualify NOW. 

Self- Employed Tax Credit (SETC) 

2024 Edition

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.

Who Is Eligible for the SETC Tax Credit?

Eligible self-employed individuals are generally those who meet the following three criteria:

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You identify as a self-employed individual (e.g., sole proprietors, freelancers, independent contractors, and gig workers). See examples below.​

  • General Practitioners

  • Personal Trainers

  • Photographers

  • Rideshare and Delivery Drivers

  • Real Estate Agents

  • Social Media Marketers

  • Veterinarians

  • Website Designers and Developers

  • Accountants and Bookkeepers

  • Airbnb Hosts

  • Amazon Resellers

  • Copywriters

  • Construction Workers

  • Consultants

  • Dentists

  • Graphic Designers

You filed a Schedule SE (IRS Form 1040) for 2020 or 2021, reported a positive net income, and paid self-employment taxes on your earnings.

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You could not work or telework in 2020 or 2021 due to COVID-19.

How Do I Apply for the SETC?

Our platform is the easiest, fastest, and most secure way for individuals to apply for the SETC.

Step 1

Step 2

Step 3

Check eligibility

Fill out the form with a few questions to determine your eligibility and calculate your estimated SETC amount.

File your claim

Our tax professionals get to work on your behalf. We calculate & file for the amount of tax credits you may receive.

No Hassle on your part!

Get your refund

The US Treasury will send you checks once your eligibility is confirmed or use our advance payments option to get your money in a few days.

How Are SETC Refunds Calculated?

Tax credits provided under the FFCRA for self-employed individuals are equal to the qualified sick leave and family leave equivalent amounts that eligible employers can claim.

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:

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  • 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.

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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 January 1, 2021, and March 31, 2021, and 10 days for the period between April 1, 2021, and September 30, 2021.

Self-Employed Tax Credit (SETC) how much I can get
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:

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  • 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.

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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 January 1, 2021, and March 31, 2021, and 60 days for the period between April 1, 2021, and September 30, 2021.

Self-Employed Tax Credit (SETC) how much I can get

Are There Any Limitations to the SETC?

Yes, in addition to the eligibility criteria, there are a few limitations of the SETC to be aware of.

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  • You will not receive the full SETC amount if you already received wages from an employer for sick or family leave in 2020 or 2021. Your SETC portion will be reduced by the wages you received.

  • You will not receive the full SETC amount if you received unemployment benefits in 2020 or 2021. Your SETC calculation must exclude these days.

  • You must be a U.S. citizen, permanent resident, or qualifying resident alien.

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A Valuable Opportunity for Self-Employed Workers

The FFCRA’s self-employed tax credits are a valuable opportunity for freelancers, gig workers, independent contractors, and sole proprietors who were unable to take advantage of other COVID relief programs like the PPP, EIDL, or Employee Retention Credit (ERC).

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Reliance Refunds is proud to offer a safe, quick, easy platform that ensures your calculations are done correctly and all the necessary documentation to support your claim is included. However, these tax credits will only be available for a limited time! Do not wait to find out if you qualify. Fill out the form today to get started.

FAQs About the SETC

How long will it take to receive my SETC refund?

It can take up to three weeks for the IRS to acknowledge their acceptance of your SETC claim and 20 weeks for the IRS to process your SETC claim and issue your checks or direct deposit. However, our clients typically receive their refund in about nine weeks. 

Do I have to repay the funds I receive from the SETC?

No, the SETC is not a loan or grant. The funds you receive from the SETC are a refund against the taxes you have already paid or owe. These tax credits are intended to compensate you for the income you have lost due to COVID-19.

Why Would the IRS Just Refund My Taxes?

Essentially, the federal government is vested in supporting businesses impacted by COVID. They recognize small businesses, including yours, play a crucial role in local and national economies. However, this is a limited-time opportunity and won’t be around forever, so it’s important you get your SETC filed ASAP!

Who Qualifies for the SETC tax credits?

To qualify for the SETC, you must meet the following criteria:

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  1. Identify as a Self-employed individual. A few examples, but not limited to, include sole proprietorship, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLC, taxed as a Sole-proprietorship, and general partner of a partnership.

  2. Have filed a Schedule SE of IRS Tax Form 1040 in 2020 and/or 2021 with positive net income and paid self-employment tax on your earnings for the years 2020 and or 2021.

  3. Have missed work due to COVID-19-related issues.

What qualifies as a reason for claiming SETC?

To qualify for SETC tax credits, you must have missed self-employment work due to COVID-related issues. If you were unable to work because of one of the following reasons, you may be eligible:

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  • A government agency imposed a quarantine or isolation order related to COVID–19.

  • Advised by a health care provider to self-quarantine due to concerns related to COVID–19.

  • You cared for an individual who is subject to either of the above two.

  • You experienced COVID-19 symptoms while also waiting for an appointment with your doctor. 

  • You were waiting for COVID-19-related test results and quarantined as a precaution.

  • You were getting vaccinated against COVID-19.

  • You were experiencing side effects from the COVID-19 vaccine

  • You cared for your child because the school or place of care of the child was closed, or the child care provider of such child is unavailable, due to COVID–19
    precautions.

  • You experienced any other substantially similar condition specified by the secretary of health and human services in consultation with the secretary of the treasury
    and the secretary of labor.

Are there any deadlines for claiming the SETC?

Yes, The deadline is April 15, 2025. This deadline accounts for $32,220 of the SETC value.

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