What Is the SETC Tax Credit Deadline?

The Self-Employed Tax Credit (SETC) is a federal tax credit created to provide relief for self-employed individuals whose work was affected by the COVID-19 pandemic. It was established as part of the Families First Coronavirus Response Act (FFCRA) and is designed to mirror the paid sick and family leave benefits that were available to employees. This refundable credit applies to specific periods in 2020 and 2021 and is not a loan, as it is based on taxes you have already paid.

The SETC is intended for sole proprietors, independent contractors, and freelancers who file a Schedule SE. It provides financial support to compensate for days they were unable to work due to personal health issues, quarantine orders, or the need to care for family members impacted by the pandemic. Claiming the credit requires amending past tax returns within specific deadlines.

Understanding the SETC Filing Deadlines

The opportunity to claim the Self-Employed Tax Credit is bound by the Internal Revenue Service’s (IRS) statute of limitations for filing an amended tax return. To claim the SETC, an eligible individual must file Form 1040-X, Amended U.S. Individual Income Tax Return. The rule for amendments allows a taxpayer to file a claim for a refund within three years from the date they filed their original tax return or within two years from the date they paid the tax, whichever is later.

This rule governs the final dates for seeking the credit for the 2020 and 2021 tax years. These deadlines are firm, and failure to file the amended return within the specified window results in the forfeiture of the potential credit. It is the taxpayer’s responsibility to understand which deadline applies to their situation and to submit the necessary forms before the statute of limitations expires.

Deadline for 2020 Tax Year

The SETC for the 2020 tax year covers leave taken between April 1, 2020, and December 31, 2020. The deadline to amend a 2020 tax return to claim this credit has passed for most filers. For a taxpayer who filed their 2020 return on the deadline of April 15, 2021, the three-year statute of limitations expired on April 15, 2024.

If a taxpayer filed their return on a different date, their specific deadline was three years from their actual filing date. Because this deadline has passed for the majority of individuals, the window to claim relief for this initial period of the pandemic has closed.

Deadline for 2021 Tax Year

The eligibility period for the 2021 tax year covers leave taken between January 1, 2021, and September 30, 2021. The deadline to file an amended return for the 2021 tax year has also passed for most filers. For an individual who filed their 2021 tax return on the deadline of April 18, 2022, the three-year window to amend that return closed on April 18, 2025. This deadline represented the final opportunity for most self-employed individuals to claim any available COVID-related tax relief through the SETC program, which was extended by the American Rescue Plan Act.

Required Information and Documentation

Before filing an amended return to claim the SETC, a taxpayer must gather specific information and documentation to establish eligibility and accurately calculate the credit amount. To qualify, an individual must have been self-employed and reported positive net self-employment income in either 2020 or 2021. They also must have been unable to work or telework for a qualifying COVID-19 related reason.

Qualifying reasons include:

• Being subject to a quarantine or isolation order
• Experiencing COVID-19 symptoms and seeking a diagnosis
• Caring for an individual under such an order
• Caring for a child whose school or place of care was closed due to the pandemic

Documentation supporting these circumstances, such as a doctor’s note, a government public health order, or a notice of school closure, is necessary to substantiate the claim.

The credit calculation is performed on Form 7202, Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals. The form requires the taxpayer to determine their average daily self-employment income. This figure is then used to compute the sick leave and family leave credit amounts, which are subject to daily caps. The information needed to complete Form 7202 includes the taxpayer’s net earnings from their Schedule SE and a record of the specific days they were unable to work. The completed Form 7202 must be attached to the amended return.

Filing an Amended Return to Claim the SETC

After determining the total credit amount, the final step is to formally claim the SETC by filing Form 1040-X, Amended U.S. Individual Income Tax Return. This form is used to correct a previously filed tax return. On Form 1040-X, the taxpayer will report the adjustments to their income and tax liability resulting from the newly claimed credit, and a detailed explanation of the changes must be included.

The completed Form 1040-X, with Form 7202 attached, must be filed with the IRS. Amended returns can be filed electronically, and taxpayers should confirm that their tax software supports this. E-filing also allows for refunds to be received via direct deposit. Alternatively, taxpayers can file a paper return by mail, and the correct mailing address is available in the Form 1040-X instructions on the IRS website.

Once the amended return is filed, taxpayers should allow 8 to 12 weeks for processing, though it may take up to 16 weeks. To monitor the progress of the claim, taxpayers can use the “Where’s My Amended Return?” online tool available on the IRS website. This tool provides status updates and can be accessed starting three weeks after the taxpayer mails their return.