How to Claim SETC

The Self-Employed Tax Credit (SETC) is a valuable resource designed to provide financial relief to self-employed individuals impacted by the COVID-19 pandemic. This guide outlines the process for claiming the SETC, ensuring you can take full advantage of this opportunity. With our simple, streamlined process, you can calculate and claim your tax credit in less than 20 minutes. Here’s how to get started.

Step 1: Create Your Account

The first step in claiming your SETC is to create a free account on our secure client portal. This portal is designed to protect your personal information while making the application process as easy as possible. To create your account, follow these steps:

1. Visit GigWorker Solutions website and navigate to the registration page.
2. Enter your personal details including your name, email address, and a secure password.
3. Verify your email address by clicking on the link sent to your inbox.
4. Log in to your new account and proceed to the next step.

Step 2: Get Your Estimate

Once your account is set up, the next step is to get an estimate of your eligible tax credit. Our system will calculate this based on the information you provide. Here’s how to do it:

1. Log in to your account on the client portal.
2. Select “Self-Employed Tax Credit” from the dashboard or click on “Calculate Your Credit!” to begin the process.
3. Enter your personal and business details, ensuring all information is accurate. This includes your name, address, and details about your self-employment.
4. Specify the affected tax years (2020 and/or 2021) and provide details about how COVID-19 impacted your income.

You will need to provide information about:

• Income loss due to contracting COVID-19, having COVID-19 symptoms, a related illness, or being told to quarantine.
• Income loss due to caregiving for someone else who was affected by COVID-19.
• Income loss due to caregiving for a minor in your household whose school or daycare closed, was sick, or was told to quarantine due to COVID-19.

Step 3: Upload Tax Returns

After getting your estimate, the next step is to upload your tax returns for the relevant years. This allows our team of tax professionals to review your application and submit it to the IRS on your behalf. Here’s what you need to do:

1. Prepare your tax documents including IRS Form 1040 Schedule SE (self-employment income), proof of illness or quarantine orders, and business records showing reduced income.
2. Upload your tax returns for 2019, 2020, and 2021, including your Schedule C, using the secure upload feature in the client portal.
3. Submit your documentation by clicking “Submit” to complete this step.

Step 4: Get Your Tax Credit

Once your application is submitted, our team at GigWorker Solutions and Anchor Accounting Services will handle the rest. Here’s what happens next:

1. Review and Submission: Our tax professionals will review your application to ensure all necessary documentation are in order. They will then submit your amended tax return (Form 1040-X) along with Form 7202, which calculates your eligible sick and family leave credits, to the IRS.
2. Processing Time: The IRS will process your claim. While processing times can vary, you can typically expect to receive your tax credit deposited into your bank account or receive a check within 14-20 business days.
3. Receive Your Check: Once the IRS has processed your claim, you will receive your tax credit check in the mail.

Claiming Process: Detailed Steps

Filing an Amended Return

If you need to file an amended return to claim the SETC, follow these detailed steps:

1. File an Amended Return: Complete IRS Form 1040-X, “Amended U.S. Individual Income Tax Return.”
2. Complete Form 7202: This form, “Credits for Sick Leave and Family Leave for Self-Employed Individuals,” calculates the SETC amount you’re eligible for. Attach this form to your amended return (Form 1040-X).
3. File Electronically: While the IRS doesn’t offer a dedicated online filing system for the SETC, you can generally file your amended return electronically using tax filing software or the IRS Free File program.
4. Mail or Fax: If you don’t file electronically, mail your completed Form 1040-X with attached Form 7202 to the appropriate IRS address based on your location.

Additional Tips for a Smooth Process

• Ensure Accuracy: Double-check all information and documentation before submission to avoid delays.
• Use Secure Methods: Always use secure methods for uploading and submitting documents to protect your personal information.
• Keep Copies: Maintain copies of all documents and correspondence for your records.

Is SETC different from FFCRA (Families First Coronavirus Response Act)?

The SETC is actually a nickname for the provisional sick and family leave tax credits for self-employed individuals introduced under the FFCRA (Families First Coronavirus Response Act). The key difference is that SETC specifically refers to self-employed individuals, while FFCRA refers to employees.

How much can I get from the SETC income tax credit?

The amount you can receive from the SETC credit varies depending on your filing status, income, and the specific regulations of your state. You can find detailed information about the credit amount and eligibility requirements through the GigWorker Solutions platform for SETC.

Can I still apply for SETC if I already filed my taxes?

Yes, in most cases, you can still apply for the SETC even if you have already filed your federal tax return. To do this, you will need to file an amended tax return. The process may vary by state, so it’s best to contact your state’s Department of Revenue for further guidance.

When will I receive my SETC cash refund?

The timing for receiving your SETC refund depends on the processing time of the IRS. Typically, after submitting all necessary documentation and your application is reviewed, you can expect to receive your refund within 14-20 business days. For more specific details regarding your refund schedule, you should check with the IRS or your state’s Department of Revenue.

Conclusion

The Self-Employed Tax Credit (SETC) is a valuable opportunity for self-employed individuals who were impacted by COVID-19. By following this comprehensive guide, you can claim your tax credit quickly and efficiently, receiving the financial relief you deserve. Don’t miss out on this government-provided benefit—start the process today and secure your SETC. If you have any questions or need assistance, our team is ready to support you through every step of the application process.