What is the SETC Tax Credit?

Understanding SETC Limitations and Restrictions

It’s essential to comprehend the limitations and restrictions of the SETC Tax Credit, despite its considerable benefits.
As an illustration, when you claim the SETC Tax Credit, your adjusted gross income may increase, which could impact your eligibility for other tax credits and deductions.

On the bright side, the SETC Tax Credit is not considered taxable income, which means no additional tax liability will result from the credit itself.

Nonetheless, there are some restrictions you should be aware of.
The full SETC amount cannot be claimed if you have received wages for sick or family leave from an employer, or unemployment benefits during 2020 or 2021.

Moreover, if you did not file your initial tax return but want to claim or adjust SETC credits, you can do so by filing an amended return within the specified deadlines set for the 2020 and 2021 tax returns.