EIC crdit changed by IRS

[jrpolingx]

The IRS did not recognize the EIC worksheet for using 2019 income for the EIC calculation.  Is there a software glich?  How do I get this fixed?

[pk]

@jrpolingx  for tax year 2020  EIC computation should be using ONLY 2020 income -- so I don't understand your reference to 2019 income -- each year stands on its own.

Can you provide a little more detail about your situation for EIC -- generally the EIC computation  used by TurboTax and IRS are the same -- comes from same table.

[VolvoGirl · Accepted solution]

The lookback rule is part of the Coronavirus tax relief package.

The special lookback rule will allow lower income individuals to use their earned income from 2019 to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020, since their lower 2020 income could reduce the amount they are eligible for.

You may use your 2019 income for the Child Tax Credit if your 2019 earned income was morethan your 2020 earned income.  If your 2020  income was more than your 2019 income then you cannot use the 2019 income.

You can look back and use your 2019 income for the EIC credit instead of 2020. How to use the Lookback provision

https://ttlc.intuit.com/community/earned-income-credit/help/how-do-i-use-the-lookback-provision-to-m...

[jrpolingx]

As I indicated in my original message, I did all that and used lower 2019 income.  For some reason IRS didn't recognize it in the TurboTax electronic submittal and lowered the EIC back to 2020 income.  

[Critter-3 · Accepted solution]

You cannot use the lower 2019 earned income ... it must be the higher of the 2019 or 2020.   Once the IRS sends you the letter of explanation then you can refute their conclusion if you can support your position.  Read the notice for instructions on how to reply. 

[jrpolingx]

Sorry senior moment.  The 2019 income was the higher not lower.