Frequently Asked Questions - Self-Employed Tax Credit (SETC)
We’ve compiled all of the most common questions we get regarding the Self-Employed Tax Credit with complete answers. If you have any additional questions please email them here: support@gigworkersolutions.co
What is the SETC tax credit?
The Self-Employed Tax Credit is a special tax credit designed to provide sick and family leave to self-employed individuals who were affected by the pandemic.
It is a part of the Families First Coronavirus Response Act (FFCRA) of March 2020.
What is the FFCRA?
The Families First Coronavirus Response Act (FFCRA) was signed into law on March 18th 2020, in response to the economic impact of the pandemic. It mandated employers to provide paid sick leave to employees who were affected by the pandemic, and provided tax credits for doing so. It also allows self-employed individuals to claim these tax credits, something most people have not done yet!
Who qualifies for the SETC?
You can qualify for the SETC if:
You were self-employed during 2020 and/or 2021
The COVID-19 pandemic affected your work
How Long Does it Take to Get The Credit?
It usually takes between 18-22 weeks to process the credit. Gig Worker Solutions has an Advance Option where you can get your money within 7-10 days.
What tax documents do I have to upload?
You need to provide your unaltered tax returns for 2020 and 2021 (optionally 2019 as well)
Who is considered self-employed?
You are considered self-employed if you’re a: Sole proprietor, 1099 subcontractor, single-member LLC, freelancer, independent contractor, gig worker etc.
Can I claim SETC as a W2?
No, the SETC does not apply to W2 employees or employers with W2s.
Is SETC a loan or a grant?
The SETC is not a loan or a grant, it’s a tax refund. You don’t pay it back and you don’t pay taxes on it.
How much does Gig Worker Solutions charge?
Gig Worker Solutions charge nothing up-front, just 20% AFTER you’ve recieved your check from the IRS
How much can I expect to get from the SETC?
We see an average funding of around $17k out of the maximum $32,220. This amount really depends on your income level as well as how many days the pandemic impacted your work. People with dependents also get more on average.
How can I claim the SETC?
To claim the SETC you will have to amend your tax returns for 2020/2021. You will need specialized CPA firm to do this, as most normal CPAs don’t know how to file for this credit. Gig Worker Solutions has partnered with Anchor Accounting Services to create a seamless application process where all the work is done for you at no up-front cost, and you only get charged 20% when you receive your money.
What is the deadline to claim SETC?
The deadline to claim the SETC for 2020 is April 15th 2024. For 2021 it’s April 15th 2025.
Is there a lot of paperwork to do?
Not at all. For Gig Worker Solutions to file on your behalf all you need to do is upload tax returns from 2020 and 2021, and we’ll take care of the rest.
