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What is the SETC Tax Credit?
Navigating SETC Limitations and Restrictions



Understanding the limitations and restrictions of the SETC Tax Credit is vital, even with its substantial advantages.

For example, claiming the SETC Tax Credit can increase your adjusted gross income, which could impact your eligibility for other tax credits and deductions.



However, the SETC Tax Credit is not considered taxable income, which means no additional tax liability will result from the credit itself.



That said, there are some restrictions you should be aware of.

You cannot claim the full SETC amount if you have received wages for sick or family leave from an employer, or unemployment benefits throughout 2020 or 2021.



Also, if you missed filing your initial tax return and now wish to claim or amend SETC credits, you can do so by submitting an amended return within the deadlines specified for the 2020 and 2021 tax returns.


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