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What is the SETC Tax Credit? The SETC, meaning “Self-Employed Tax Credit”, is a specialized tax credit intended to give financial relief to self-employed workers who were adversely impacted by the COVID-19 pandemic. This credit was introduced as part of the Families First Coronavirus Response Act (FFCRA) to support sole proprietors, independent contractors, gig workers, and other self-employed professionals dealing with 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 workers can obtain the credit as a refund, even if they have no tax liability. how to apply for the setc tax credit reduces their tax burden on a dollar-for-dollar basis, possibly leading to a significant increase in their tax refund. The SETC tax credit is intended to give self-employed workers financial support similar to the paid sick and family leave benefits typically offered to employees. By providing this credit, the government recognizes the unique challenges faced by the self-employed sector during the pandemic and aims to mitigate income disruptions and ensure greater financial stability for these professionals.