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Self-Employed Tax Credit (SETC) Program FAQ’s

Self-employed Tax Credit (SETC) Program FAQ’s

  • What is the SETC program?

    If you’re a real estate agent, insurance agent, trucker, small business owner, 1099 contractor or small business owner you’ve probably never heard of the Self-Employed Tax Credit (SETC). This is why we are gong to share exactly what it is, and how can it benefit you.

    In a nutshell, the SETC is a tax credit created by Congress to help self-employed individuals who experienced financial hardship due to the COVID-19 pandemic. This includes folks like you and me who faced government-ordered shutdowns, quarantine, illness, caregiving responsibilities, or other income-reducing events.

    Think of it as a financial lifeline thrown to us by Uncle Sam.  It’s a way to acknowledge the unique challenges we faced as self-employed individuals during those tough times.

    Ready to see how much you could be eligible for? Just head over to our online portal and complete your application. It’s quick, easy, and could put some serious cash back in your pocket.

    Remember, the SETC is a valuable resource that can help you recover from the pandemic and thrive in the future. Take advantage of it and get the financial relief you deserve!

  • Can someone still fully claim the full $32,200 and when does this program end?

    You may still fully claim this credit until April 18th 2025 and both spouses are able to claim this credit so $64,400. The first period is 1/1/21-3/31/21 and the second period is 4/1/21 – 9/30/21.

    Small business owner applying for the SETC
    It’s your money- Take 5 minute get funds in 10 days or less.
  • How does the interest that the IRS adds to the check work?

    IRS will apply interest to the SETC refund check like how they apply interest when you owe. This compounds and the rate is set quarterly by the IRS. This program retroactively applies interest back to the original 2021 filing. IRS Quarterly Interest Rates

  • If I had W2 income or K1 income from another business source can I still claim the SETC Credit?

    Yes, this program is completely separate and is based on the 1099 income that an individual made during the 2020 and 2021 period.

  • Is my SETC refund check taxable?

    Your SETC refund is not taxable, it is treated as an overpayment refund. The interest applied by the IRS would be considered income.

  • Why is the Anchor Calculated Benefit different than the amount I self calculated initially?

    There are several factors that can cause a difference between our certified credit amount and the self-calculated amount:

    • If you incorrectly put a different amount for your SE Line 6 versus what was on your tax return
    • If you claimed children/dependent impact yet do not have any children listed on your submitted tax return the credit cannot be claimed
    • You already claimed the credit for one or both periods thus making some or all of the claim ineligible.
  • Why do you have such a rigorous KYC Process?

    We not only ensure that we exceed the IRS’s KYC (Know Your Customer) compliance but also must ensure we meet the bank regulatory requirements for the treasury services and advance lending services. This includes Facial Scans, ID Verification, Geolocation, SSN check, DOB check, Fraud and Sanctions lists reviews utilizing SOCURE, and the major credit bureaus we not only provide a program but have done so compliantly to ensure its long term success for our clients, affiliates, and Company

  • How does Treasury Services Work?

    Our SETC processing is done compliantly which means we complete this by hand including wet signatures from clients. Our partnership with Carter Federal Credit Union allows us to not only support the processing end to end but also will have your refund check deposited electronically into your bank account of choosing. We provide this service at no expense to the client.

  • Why am I becoming a member of Carter Federal Credit Union?

    Carter Federal Credit Union is a credit union and as such you must be a member to utilize their services. This includes both the Treasury Service as well as the advance option. There is no cost to become a member it is being provided as part of the SETC program. You will sign a limited Power of Attorney empowering Carter to provide the treasury services taking possession of your refund check, depositing the check on behalf of its member (you) and then direct depositing the check into your linked account of choice. If you elect the advance they will pay off the advance and remit the balance to your linked account.

  • Can Anchor Process my SETC claim without Treasury Services?

    No, to ensure our clients get their funds and in turn we can collect our fees as we do not charge upfront, we will not complete filings that do not also include treasury services.

    Self-Employed Tax Credit (SETC) FAQ | Up to $32,220 Refund | GigWorkersSolutions.com

  • What is the advance program?

    We have stood up a first of its kind advance that instead of an unsecured consumer loan the advance is collateralized against the SETC tax refund check. This is another reason why the Treasury services are so valuable for our clients. If they do not owe the IRS which we will check as part of the advance application, then a claimant can get 100% of their SETC refund amount advanced (less Anchor’s fees). This process can be completed in as little as 20 business days if the clients complete the necessary paperwork and the IRS processes things timely.

  • What has to be completed to be eligible for the advance?

    The client must complete the 4506T and we must receive back from the IRS the Account Transcripts confirming there is no back taxes owed Provide the necessary information to Anchor, Anchor completes the amended filings, you sign and send these back to us along with the 8822’s and 8821 Once all completed, we will submit the packet to CFCU to generate the loan documents so long as you do not owe the IRS back taxes

  • What if I applied for the advance and I owe back taxes?

    Then you will not be eligible for the advance and automatically moved into the standard Treasury services program

  • What are the costs associated with the advance and do I have to make monthly payments?

    There are no up-front payments or reductions from your advance payment outside of paying Anchor’s fees. There are no monthly repayments, CFCU and its partners will wait for the IRS to finish processing your check. They will then repay the advance from the check that comes into treasury and subtract the loan expenses from the IRS interest added to the refund check. There is an 18% APR rate calculated daily on the advance. The client, net of fees, will still receive anywhere from 20-60% of the interest from the IRS in addition to the advance that they had received months ago.

  • What if I am declined for KYC?

    Then unfortunately we are unable to process your file.

  • How long does it take for the IRS to complete the standard processing of my SETC claim?

    16-20 weeks is the stated time but they are currently taking significantly longer than 20 weeks

  • What are the minimums for Anchor to process the SETC claim?

    $2,000 is the minimum credit that Anchor will process. This is to ensure that the client is always benefitting the most from the filing without Anchor doing work for a loss.

  • I am having trouble accessing the agreements to sign

    Please see what the notice/error message is stating. If it states that it cannot verify your mobile, state, address, name, etc. please click update your information and ensure that everything is 100% accurate so that the KYC can be completed and your agreements can be prepopulated. Should this still not work or you have additional questions please contact support@gigworkersolutions.com or open a support ticket in the support center

  • When are the Support Teams Reachable?

    Support teams are available Monday – Friday 8 – 4:30 EST by phone and then the team works additional hours periodically to quickly respond to incoming support tickets and emails

  • Should a client make multiple logins if they have an issue with their KYC?

    Absolutely not! Having multiple attempts to complete the SETC will trigger our fraud risk and prevent someone from having the opportunity to get their file completed.

  • How can I track my refund check?

    We are actively tracking your refund check from the moment UPS scans your packet and sends it to the IRS. Check your SETC Dashboard on the home screen of your Gig Worker Solutions account for updates. Any correspondence received via treasury services on your behalf will be available in your document center of your GWS account.

  • Why Am I changing my address with the 8822?

    This is to ensure that Treasury services can be completed for you which not only includes your refund check but ensures any correspondence/requests for information in relation to your claim arrives quickly to Anchor so we can keep your file moving. Once you have received your SETC refund check the address will revert back to your primary address

  • Does owing child support, garnishments, or state taxes affect my SETC refund check?

    No, if you do not owe back taxes, your refund check will be sent to you. Should you owe the IRS back taxes the credit will assist you in repaying those balances.

  • Why does the credit on the amended forms not match what I was told?

    Often claimants look at the new 1040 line 34 or 37 but they should look at the 1040x Line 22 which is where you will find the refund due.

Claim Your Self-Employed Tax Credit (SETC) Now! Up to $32,200 | Gig Workers Solutions.com

 

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