As the April 15th deadline looms, self-employed individuals are being urged to explore their eligibility for the Self-Employment Tax Credit (SETC), a financial lifeline introduced as part of the COVID-19 relief measures from the IRS. With less than a month remaining, eligible taxpayers are encouraged to take advantage of this opportunity to get a refund of up to $32,200.
What is the SETC Tax Credit?
The Self-Employed Tax Credit (SETC) provides as much as $32,220 in financial support to self-employed individuals affected by COVID-19. This credit is designed to offer aid and mitigate the impact of income disruptions as part of the American Rescue Plan Act of 2021. It’s not a loan, is not taxable and doesn’t have to be paid back.
Recognizing that the pandemic’s economic impact has affected entrepreneurs across all income levels, the SETC extends its coverage to both self-employed employers and independent contractors. This inclusive approach provides a means for recouping lost wages through tax credits, acknowledging the shared struggle and offering a path to recovery for the backbone of the economy – the self-employed and small business owners hit hard by COVID-19.
Who can qualify for the SETC Tax Credit?
- Anyone self-employed
- Independent contractors
- Owners of small businesses
- Freelance workers
- Partners in a general partnership
- 1099-contract workers
- Persons engaged in a trade or business as self-employed entities
How to Qualify for SETC?
- Confirm self-employed status as a sole proprietor, independent contractor, freelancer, gig worker, or similar in 2020 & 2021.
- U.S. Citizenship/Residency: Must be a U.S. citizen or qualified permanent resident.
- Demonstrate income disruption due to COVID-19 for eligibility.
- Complete and submit IRS Form 7202 with the tax return to calculate and claim the credit, adjusting for any received sick leave, family leave benefits, or unemployment benefits in 2020 or 2021.
Time is Running Out
With the April 15th deadline approaching, self-employed individuals are urged to consult with their tax professionals to determine their eligibility and ensure they claim the credit before it expires. Failing to claim the SETC could result in a missed opportunity to significantly reduce one’s tax burden or provide a credit for the tax year.
“It’s encouraged that all self-employed individuals take a close look at their tax situation and see if they qualify for the SETC,” said a spokesperson from the website Self-Employed Tax Credit. “This credit can provide much-needed financial relief, but time is of the essence. Don’t wait until the last minute to explore refund options.”
For more information on the Self-Employment Tax Credit and to see who qualifies, visit https://www.selfemployedtaxescredit.com
Media Contact
Name
Self-Employed Tax Credit
Contact name
Rick A. Barclay
Country
United States
Url
https://www.selfemployedtaxescredit.com/
COMTEX_448845191/2737/2024-03-06T10:13:32
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