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What is how to apply for the setc tax credit ? The SETC, meaning “Self-Employed Tax Credit”, is a unique tax credit designed to offer financial relief to self-employed people who were adversely impacted by the COVID-19 pandemic. This credit was brought in as part of the Families First Coronavirus Response Act (FFCRA) to support sole proprietors, independent contractors, gig workers, and other self-employed professionals facing economic challenges due to the pandemic. One of the key features of the SETC tax credit is that it is a refundable credit, not a loan. This means that qualified self-employed individuals can receive the credit as a refund, even if they have no tax liability. The credit effectively reduces their tax burden on a dollar-for-dollar basis, potentially leading to a significant increase in their tax refund. The SETC tax credit seeks to offer self-employed workers financial support similar to the paid sick and family leave benefits typically offered to employees. By providing this credit, the government understands the unique challenges faced by the self-employed sector during the pandemic and seeks to mitigate income disruptions and promote greater financial stability for these professionals.