Maximize Your 2021 IRS Refund Claim
If you’re self-employed, understanding how to calculate the SETC tax refund could help you secure a significant payout for the 2021 tax year. With refunds of up to $32,220 available, this credit applies to 1099 contractors, gig workers, freelancers, small business owners, and sole proprietors. The deadline to file your claim closes on April 15, 2025, so there’s still time to act, even if you’ve already filed your 2021 return.
At SETC Tax Return, we specialize in helping self-employed individuals like you claim tax credits with ease. Our platform simplifies the filing process so you can focus on your business while we ensure you receive the full refund you’re entitled to. Whether you’ve already filed your 2021 taxes or are submitting an amended return, we’re here to guide you every step of the way.
Here’s how the refund is calculated and how you can take advantage of it.
What is the SETC Tax Credit?
The Self-Employed Tax Credit was created to support individuals whose ability to work was affected by COVID-19 in 2021. It provides compensation for lost income, offering significant financial relief. This refund is not a loan or grant but a non-taxable credit based on taxes you already paid in 2021.
The credit is available to a wide range of self-employed individuals, including 1099 contractors, small business owners, sole proprietors, freelancers, and gig workers. If COVID-19 affected your ability to work, you can claim up to $511 per day for the time you couldn’t earn.
How is it Calculated for Your 2021 IRS Refund?
The SETC Tax refund is based on your net self-employment income for 2021. Here’s how it works:
- Determine your average daily income: Divide your annual net self-employment income by 260, the average number of workdays in a year. This gives you your average daily income.
- Sick days: If you couldn’t work due to being sick with COVID-19 or needing to quarantine, you can claim 100% of your average daily income, up to $511 per day, for up to 10 days.
- Caregiving days: If you were caring for someone with COVID-19 or a child whose school or daycare was closed, you can claim 67% of your average daily income, up to $200 per day, for up to 60 days.
Example:
Let’s say your annual net self-employment income in 2021 was $65,000.
- Average daily income: $65,000 ÷ 260 = $250/day
- For sick days: You can claim $250/day (up to 10 days).
- For caregiving days: You can claim $167/day (two-thirds of $250) for up to 60 days.
In this scenario, if you claim all 10 sick days and 60 caregiving days, your total claim would be:
- Sick days: $250 × 10 = $2,500
- Caregiving days: $167 × 60 = $10,020
- Total refund: $12,520
Who Qualifies For It?
Most self-employed individuals with Schedule C income qualify, including:
- 1099 contractors
- Freelancers
- Small business owners
- Gig workers
- Sole proprietors
If you experienced any COVID-related disruptions in 2021, you’re likely eligible. Even if you filed your 2021 taxes without claiming the SETC tax credit, you can still file an amended return for this claim.
Act Now Before the Deadline
The opportunity to claim your money is only available until April 15, 2025. After that, the IRS will no longer accept amended returns for the 2021 tax year.
Filing sooner rather than later ensures you have time to gather the necessary documentation, file an amendment, and avoid missing out. The potential payout—up to $32,220—is significant, and there’s no reason to leave that money unclaimed.
How We Can Help
Filing a claim like this can feel overwhelming, especially if you’re unfamiliar with tax amendments. That’s where SETC Tax Return comes in.
- Simplifying tax credits: Our platform is designed to make claiming tax credits for your 2021 IRS refund straightforward and stress-free.
- Automated solutions: Whether you’re a seasoned business owner or new to self-employment, our tools guide you through the process step by step.
- Maximizing your benefits: We help you claim every dollar you’re entitled to, ensuring you don’t miss out on any opportunities.
Our mission is to empower self-employed individuals with easy-to-use tools, so you can focus on running your business while we handle the details of your claim.
How to File for the SETC Refund
Properly filing requires amending your 2021 tax return. Here’s a quick guide:
- Review your records: Gather documentation showing the days COVID-19 affected your ability to work or required you to care for someone else.
- Calculate your eligible days: Determine the number of sick days and caregiving days you can claim.
- File an amended return: Submit Form 1040-X to the IRS, including the necessary calculations.
If you’re unsure about the process, we’re here to help. We make filing easy with user-friendly software and expert support.
Don’t Miss Out on Getting Back More From Your Claim
The SETC tax refund is a rare opportunity to reclaim lost income from the 2021 tax year. If you’re self-employed, this credit could mean thousands of dollars in your pocket. Remember:
- Deadline: File by April 15, 2025.
- Maximum payout: Up to $32,220.
- Who qualifies: Anyone with Schedule C income affected by COVID-19.
Don’t let this chance pass you by. With SETC Tax Return, filing is simple and straightforward. Let us help you secure the money you deserve before the deadline arrives. To get started, click here or give our team a call at 888-738-2829.