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What is learn more ? The SETC, meaning “Self-Employed Tax Credit”, is a specialized tax credit created to provide financial relief to self-employed people who were adversely impacted by the COVID-19 pandemic. This credit was implemented 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 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, possibly leading to a significant increase in their tax refund. The SETC tax credit seeks to offer self-employed people financial support like the paid sick and family leave benefits typically offered to employees. By giving this credit, the government understands the unique challenges faced by the self-employed sector during the pandemic and aims to mitigate income disruptions and promote greater financial stability for these professionals.