SETC Tax Credit

Financial support may be available to you!

The COVID-19 pandemic resulted in a great loss of income for many drivers and their families. In response to this, the federal government offers the Self Employed Tax Credit to qualifying individuals who had to take sick or family leave due to COVID-19 in 2020 and 2021. 

What to Know About the Self Employed Tax Credit

  • The Self Employed Tax Credit is available to individuals who had to take qualifying sick or family leave between April 1, 2020 and September 30, 2021 due to COVID-19.
  • Depending on your net income as a self-employed individual, you may qualify for up to $32,220.
  • Sick and family leave can include, but is not limited to, needing to take time off work due to a COVID-19 diagnosis, COVID-19 vaccine recovery, needing to care for a family member sick with COVID-19, or time off work due to school or government shutdown.
  • SETC is a tax credit program. It is not a loan (does not need to be repaid) and is not taxable. 

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What are the limitations?

  • No “double dipping:” Applicants cannot claim days that were already claimed for Unemployment Insurance

The Submission Deadline is Approaching!

  • For drivers wanting to submit an application for the 2020 tax credit, the deadline is: April 15, 2024.

How to Apply

The IDG knows that applying for tax credits can be tricky. This is why we’ve partnered with Horizon Funding and Quantifi Tax, so drivers can receive discounted one-on-one assistance with the SETC application process.

While drivers are encouraged to explore their resources, Horizon Funding and Quantifi Tax are ready to offer discounted rates to drivers for help with preparing and submitting their SETC application. 

We have worked with Horizon Funding before to help drivers apply for PPP loans, and are excited to work with them again for the SETC.

How much will it cost?

  • While there is no cost to apply for this tax credit directly with the IRS, you may prefer to enlist the assistance of a tax professional.
  • If you choose to go through our partners, you will be pre-screened to see if you might qualify.
  • If you proceed with the application process and are found eligible through Horizon and Quantifi, you will only need to pay a one-time $150 processing fee, with 16% of the credit once you receive the amount.

About the rate

As always, there is no obligation to go through our partners. However, please note that this rate is competitive. Other groups typically charge higher rates – up to a $400 processing fee and 20% of credit received

How to get started

  1. To begin, please navigate to this intake form.
  2. You will answer basic questions, such as how you were affected by COVID, and how many days you missed due to the pandemic.

To prepare for a SETC application, you would need:

  • Note any days you were not working due to COVID or COVID-related circumstances between April 1, 2020 and September 30, 2021. 
  • Pull your unemployment records in the same period to confirm there is no overlap
  • Pull your unemployment records in the same period to confirm dates you were receiving unemployment benefits
  • Pull your 2019, 2020, and 2021 tax returns; and any W-2s for jobs worked outside of driving

After you submit your intake form

  1. Wait up to 48 hours for processing
  2. You will be contacted by a Quantifi Tax representative notifying you about your potential eligibility for this tax credit
  3. If you are qualify, you will be asked to digitally sign an agreement, and pay the one-time $150 processing fee
  4. It will take Quantifi 3-5 business days to complete and submit your SETC application
  5. If approved, it may take up to 190 days from the day you submitted your application to receive a check
  6. You can then pay 16% of the amount received to [Horizon/Quantifi] via credit card or ACH

If you have questions about this service or your application

The IDG team will be helping drivers relay their questions to the Horizon/Quantifi team. Please email help@driversguild.org and you will receive a response within 2 Business days.

Announcement

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