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SETC Tax Credit Overview
SETC Tax Credit

The Self-Employed Tax Credit (SETC) was introduced by the government to assist entrepreneurs, freelancers, and independent contractors facing challenges during the COVID-19 pandemic. This refundable tax credit offers financial relief of up to $32,220 to eligible self-employed individuals who have encountered qualified sick or family leave due to COVID-19.

Requirements for the State Employees Training Certificate (SETC)

In order to be eligible for the SETC, individuals need to have generated self-employment income during 2019, 2020, or 2021 and experienced a disturbance in work as a result of COVID-19.
This could include:

Unable to work because of a quarantine or isolation directive
Showing signs of COVID-19 and in need of a medical evaluation
Providing care for an individual with COVID-19 or who is in quarantine
Children affected by school or childcare closures caused by the pandemic



Eligibility is not dependent on having a COVID-19 diagnosis.


Claiming the SETC

- In order to receive the SETC, Form 7202 must be submitted along with your 2020 and/or 2021 tax returns.
The credit claiming deadline has now been extended to April 2025.
Collect all required paperwork and submit your filing without delay.


Calculate your SETC amount by following the guidelines outlined below.

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


Make sure to grab hold of this valuable opportunity before it slips away.
For this guide has details who meet the criteria for the SETC, it's important to investigate your eligibility and initiate the claiming procedures. The deadline has been extended to April 2025, giving you plenty of time to collect all required paperwork.

Commonly Asked Questions (FAQ)

Which individuals are qualified for the Self-Employed Tax Credit (SETC)?
What is the potential amount of financial relief available through the SETC?
How to claim the SETC?
When is the deadline for claiming the SETC?
Is a COVID-19 diagnosis required to qualify for the SETC?
Is it possible to claim the SETC if other COVID-19 relief has been received?
Does the SETC incur taxes?
What is the method for estimating the SETC amount?

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