Beware of SETC (Self-Employed Tax Credit) Emails!
We all get those solicitation emails for business funding and loan opportunities. This one in particular I had seen a few times and this time I decided to research it because “SETC” sounded familiar. SETC stands for Self-Employed Tax Credit and the email got my attention being well written, rather short, key bullet points, and to be honest it seemed pretty legit. TLDR: It’s misleading and you may want to just treat it like spam and delete the email.
Check out some of what I read from the email we received:
Here’s what makes the SETC Rebate so appealing: IT’S NOT A LOAN! You won’t have to worry about repayment or restrictions on how the funds are used. It’s a cash rebate directly paid to you.
To check if ______ ________ is eligible, simply CLICK HERE to visit our website and complete a quick 1-minute online form. Don’t miss out on this incredible opportunity!
If you work for yourself as a self-employed individual in any of the categories listed below, you meet the requirements and could receive up to $32,220 through the SETC tax credit:
- Sole Proprietors
- 1099 Contractors
- Freelancers
- Single-member LLCs
- Gig Workers
- Other self-employed professionals
We’re a small agency here at Design Theory and from humble beginnings where we wore all the hats and did just about all of the necessary paperwork. Claiming or filing an SETC did NOT sound familiar to me, and believe you me, we were always looking for ways to decrease our tax burdens. A quick Google search and I was immediately seeing an excerpt from the IRS website dispelling this “opportunity” and speaking to it in the form of how I received it (email or social media).
From the IRS
“Promoters and social media are marketing something they describe as the “Self Employment Tax Credit” as a way for self-employed people and gig workers to get big payments for the COVID-19 pandemic period. Similar to misleading marketing around the Employee Retention Credit, there is inaccurate information suggesting many people qualify for the tax credit and payments of up to $32,000 when they actually do not.
In reality, the underlying credit being referred to in social media isn’t called the “Self Employment Tax Credit,” it’s a much more limited and technical credit called Credits for Sick Leave and Family Leave. Many people simply do not qualify for this credit, and the IRS is closely reviewing claims coming in under this provision so people filing claims do so at their own risk.
“This is another misleading social media claim that’s fooling well-meaning taxpayers into thinking they’re due a big payday,” said IRS Commissioner Danny Werfel. “People shouldn’t be misled by outlandish claims they see on social media. Before paying someone to file these claims, taxpayers should consult with a trusted tax professional to see if they meet the very limited eligibility scenarios.”
Click here to read the full article on the IRS Government website.
If you happen to receive an email like this from the same vendor or another, make sure to do your research before responding or sharing your personal or business information. It’s 2024 and chances are you’re not the only one to receive an offer or some exclusive business opportunity, and whether you check on Reddit or your local Chamber of Commerce, validate the legitamacy of a company or organization before you share your sensitive information.
