This tool will help you calculate your potential tax credit savings easily.
How to Use the SETC Tax Credit Calculator
Enter the values in the provided fields:
- Qualified Wages: The total amount of wages that qualify for the credit.
- Work Opportunity Tax Credit: Any credits already applied from the Work Opportunity Tax Credit.
- Other Credits: Any other credits that need to be considered.
How It Works
The calculator computes your SETC using the following formula:
SETC Credit = (20% of Qualified Wages) – Work Opportunity Tax Credit – Other Credits
Limitations
Please note that this calculator is for informational purposes only and may not reflect the exact credit you can claim. Always consult with a tax professional for precise calculations and to understand specific eligibility requirements.
Use Cases for This Calculator
Calculate SETC Tax Credit for a Single Employee
Enter the eligible employee count and their total wages for the year to determine the Work Opportunity Tax Credit (WOTC) for a single employee. The calculator will show the tax credit amount based on the inputs provided.
Estimate SETC Tax Credit for Multiple Employees
You can input the total number of eligible employees and their collective wages to estimate the total Work Opportunity Tax Credit for multiple employees. The calculator will display the combined tax credit amount for all employees.
Calculate SETC Tax Credit for Seasonal Hires
If you hire seasonal employees, input the number of seasonal employees and their total wages earned during their employment period. The calculator will determine the tax credit specific to your seasonal hires.
Estimate SETC Tax Credit for Veterans
Input the number of eligible hired veterans and their wages to estimate the Work Opportunity Tax Credit for hiring veterans. The calculator will show the tax credit amount specifically for veteran employees.
Determine SETC Tax Credit for Long-Term Unemployed Individuals
Enter the count of long-term unemployed individuals hired and their wages to determine the tax credit for hiring long-term unemployed workers. The calculator will display the tax credit for these individuals.
Calculate SETC Tax Credit for SNAP Recipients
If you hired employees who are Supplemental Nutrition Assistance Program (SNAP) recipients, input their count and wages to calculate the tax credit. The calculator will show the specific tax credit for hiring SNAP recipients.
Estimate SETC Tax Credit for Individuals with Disabilities
Input the number of individuals with disabilities hired and their wages to estimate the tax credit for hiring disabled individuals. The calculator will display the tax credit amount applicable to these employees.
Calculate SETC Tax Credit for Ex-Felons
If you hire ex-felons, input their count and total wages to calculate the Work Opportunity Tax Credit for hiring ex-felons. The calculator will show the tax credit specific to ex-felon employees.
Estimate SETC Tax Credit for Designated Community Residents
Input the count and wages of designated community residents hired to estimate the tax credit for hiring individuals within designated communities. The calculator will display the specific tax credit amount for these employees.
Determine Total SETC Tax Credit for All Eligible Categories
If you hired employees falling into multiple eligible categories such as veterans, SNAP recipients, and ex-felons, you can input the counts and wages for each category. The calculator will determine the total combined Work Opportunity Tax Credit for all eligible categories combined.