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SETC Tax Credit

Self-employed individuals, such as entrepreneurs, freelancers, and independent contractors, have faced unique challenges due to the COVID-19 pandemic. To assist these essential members of our economy during these challenging times, the government has implemented the Self-Employed Tax Credit (SETC). This credit, which is refundable, offers financial relief of up to $32,220 to eligible self-employed professionals who have been impacted by qualified sick or family leave related to COVID-19.

Requirements for the State Employees Training Certificate (SETC)

In order to be eligible for the SETC, individuals must have received self-employment income in the years 2019, 2020, or 2021 and experienced a significant work interruption as a result of the COVID-19 pandemic.
















• This could include:
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  • Inability to work because of a quarantine or isolation mandate
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  • Having symptoms of COVID-19 and looking for a medical diagnosis
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  • Providing care for an individual with COVID-19 or who is in quarantine
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  • Dealing with the closure of schools or childcare facilities for children during the pandemic
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

















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

Claiming the SETC

• Form 7202 must be filed with your 2020 and/or 2021 tax returns in order to claim the SETC.








- The credit claim deadline has been extended until April 2025.
















• Collect all required paperwork and submit your application promptly.

Calculating your SETC Amount

1. Calculate your total self-employment income for the year.

















2. Calculate your average daily self-employment income by dividing your net self-employment earnings by 260.








Multiply your average daily self-employment income by the total number of days you were unable to work because of COVID-19.
















3. If your estimated credit exceeds the daily limits, make sure to adjust your calculation accordingly.

Make sure to grab hold of this valuable opportunity before it slips away.

If you qualify for the SETC, explore your eligibility and start the claiming process. The extended deadline of April 2025 allows ample time to gather necessary documentation.

Commonly Asked Questions

1. What are the eligibility requirements for the Self-Employed Tax Credit (SETC)?

















2. What is the maximum financial assistance available through the SETC?








How can one claim the SETC?







When is the deadline to claim the SETC?







Can COVID-19 relief for self-employed hair stylists with SETC qualify for the SETC without a COVID-19 diagnosis?







Am I eligible for the SETC even if I have received other COVID-19 relief?
















3. Is taxation applicable to the SETC?

















4. What is the method for calculating my SETC amount?

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