If you missed out on the self-employed tax credit for 2021, there’s still time to claim what you’re entitled to. The SETC refund allows eligible individuals to receive up to $32,220 for lost income due to COVID-19-related disruptions. Even if you have already filed your taxes, you can still amend your 2021 IRS refund to include this credit. The deadline to file an amended return is April 15, 2025.
Here’s a step-by-step guide on how to claim the SETC credit, what you’ll need, and how SETC Tax Return can simplify the process for you.
What is the Self-Employed Tax Credit?
The self-employed tax credit was created to compensate for income lost due to COVID-19. If you were unable to work because you were sick, quarantined, or caring for a family member, you may be eligible to claim a refund. This credit is based on your net self-employment income for 2021 and can cover:
- Up to $511 per day if you were unable to work due to illness or quarantine (maximum of 10 days).
- Up to $200 per day if you were caring for someone with COVID-19 or a child whose school or daycare was closed (maximum of 60 days).
This credit applies to anyone with Schedule C income, including freelancers, gig workers, small business owners, 1099 contractors, and sole proprietors. If you didn’t include this credit in your original return, amending your 2021 IRS refund could mean thousands of dollars back in your pocket.
What You Need to File an Amended Return
To claim the SETC credit, you’ll need to gather certain documents and records. Having the following information ready will streamline the process:
- Your original 2021 tax return: You’ll need a copy of your filed return (Form 1040) to make corrections.
- Net self-employment income: This can be found on your Schedule C form. Your average daily income is calculated by dividing your annual net income by 260, the average number of workdays in a year.
- Dates impacted by COVID-19: You will need to show a record of when you were unable to work due to illness, quarantine, or caregiving responsibilities.
- Caregiving records: If you were caring for a child or family member, note the specific dates you provided care and any related documentation.
- Form 1040-X: This is the IRS form used to amend previously filed returns. You’ll use this form to add the self-employed tax credit to your original return.
- Personal identification: A valid driver’s license or other ID for verification purposes.
How to File an Amended Return for the SETC Refund
Amending your 2021 tax return might sound complicated, but the process is straightforward if you follow these steps:
Step 1: Review Your Original Tax Return
Start by examining your original 2021 tax return to confirm that the SETC tax credit wasn’t claimed. If it wasn’t, you’ll need to calculate the refund amount based on your eligible days.
Step 2: Gather Documentation
Ensure you have all the necessary records listed above. Accurate documentation is critical for claiming the correct amount of your SETC refund.
Step 3: Calculate Your Eligible Credit
Use your net self-employment income to calculate your daily income. Multiply this amount by the number of eligible days for both sick leave and caregiving leave. Remember, there’s a cap of $511 per day for sick days and $200 per day for caregiving.
Step 4: Complete Form 1040-X
Fill out Form 1040-X to amend your 2021 return. Be sure to include your recalculated refund amount and attach any supporting documents required by the IRS.
Step 5: Submit Your Amended Return
Mail your completed Form 1040-X to the IRS. Keep a copy for your records and track the status of your amendment to ensure it’s processed correctly.
Why Act Before April 15, 2025?
The IRS only allows three years to amend a tax return. For the 2021 IRS refund, this means the deadline is April 15, 2025. After this date, you will lose the opportunity to claim the self-employed tax credit, potentially missing out on thousands of dollars in refunds.
Filing sooner rather than later ensures you have time to make corrections, gather documents, and resolve any issues that arise. Don’t wait until it’s too late to claim your refund.
How SETC Tax Return Can Help
Filing for a refund or amending a return can be overwhelming, especially if you’re unfamiliar with the process. That’s where we step in to simplify everything.
- Automated Solutions: Our platform is designed to make claiming tax credits straightforward, even if you have minimal tax knowledge.
- Personalized Support: We provide tailored assistance to ensure your claim is accurate and maximized.
- Expert Guidance: Our team helps self-employed individuals understand their eligibility and claim their refunds without the hassle.
SETC Tax Return is committed to empowering self-employed individuals to get the credits they deserve. With our tools and expertise, you can confidently amend your 2021 return and secure the SETC refund you’re entitled to.
Don’t Miss Out, File Your Claim Today!
If COVID-19 impacted your ability to work in 2021, amending your tax return could mean thousands of dollars back in your hands. The SETC tax credit is available to a wide range of self-employed individuals, but the clock is ticking. The deadline to amend your return is April 15, 2025.
By working with our team of tax experts, you’ll gain access to the tools and support you need to file confidently. Don’t leave money on the table. Start your amendment today and unlock the refund you deserve. Call us at (888) 738-2829 or visit our website to learn how we can help.
Don’t let this chance pass you by. With SETC Tax Return, filing is simple. 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. dapibus leo.