Well based on 2022 your tax might be about 4,500. So the 7,500 credit will wipe that out. But if you have day care self employment income you will still owe the self employment tax on it. The credit won't apply to that.
You pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare.
Are you thinking the tax will be 7600? That is a fixed 20% just for withholding. That's not the actual tax on all your income. Your tax may be less.
