What is the SETC Tax Credit?

Navigating SETC Limitations and Restrictions

Despite the significant benefits of the SETC Tax Credit, it is crucial to understand its limitations and restrictions.
As an illustration, claiming the SETC Tax Credit can increase your adjusted gross income, which could impact your eligibility for other tax credits and deductions.

However, the SETC Tax Credit is not considered taxable income, so no extra tax liability will be generated by the credit.

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

Also, if you missed the initial tax return filing but wish 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.