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SETC Tax Credit Overview
SETC Tax Credit

During the COVID-19 pandemic, self-employed individuals such as entrepreneurs, freelancers, and independent contractors have faced unique challenges. To assist self-employed tax credit refund in our economy during this challenging period, the government has implemented the Self-Employed Tax Credit (SETC). Eligible self-employed professionals who have experienced a qualified sick or family leave related to COVID-19 can receive up to $32,220 in financial relief through this refundable tax credit.

SETC Eligibility

To be eligible for the SETC, one must have generated self-employment earnings in the years 2019, 2020, or 2021 and experienced a work interruption as a result of the COVID-19 pandemic.
This could include:

Experiencing the inability to work as a result of a quarantine or isolation directive
Showing signs of COVID-19 and looking for a medical assessment
Providing assistance to an individual with COVID-19 or in quarantine
Dealing with the closure of schools or childcare facilities for children because of the pandemic


There is no need for a COVID-19 diagnosis to qualify.


Claiming the SETC

Form 7202 must be filed along with your 2020 and/or 2021 tax returns in order to claim the SETC.
The deadline for claiming the credit has been extended until April 2025.
Collect all required paperwork and submit your application promptly.


Calculate your SETC amount by following the guidelines outlined below.

Calculate your net self-employment earnings for the tax year.
Calculate your average daily self-employment income by dividing your total net earnings by 260.
Calculate the total loss of income by multiplying your average daily self-employment earnings by the number of days you couldn't work because of COVID-19.
Make sure to modify your calculation if the estimated credit surpasses the daily limits.


Take advantage of this valuable opportunity.
Explore your eligibility for the SETC and begin the claiming process. refundable tax credits include the has been extended to April 2025, providing plenty of time to collect the required paperwork.

Commonly Asked Questions (CAQ)

What are the qualifications for the Self-Employed Tax Credit (SETC)?
What amount of financial relief is available through the SETC?
What is the process for claiming the SETC?
When is the deadline to claim the SETC?
Is a COVID-19 diagnosis necessary for eligibility for the SETC?
Is ffcra credit to claim the SETC if other COVID-19 relief has been received?
Does the SETC incur taxes?
Estimating your SETC amount involves calculating your expenses and income to determine the eligible expenses you can claim for the credit.

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