Eitc

Forum|Forum|5 years ago
February 10, 2021
1 reply
10 views

Can u claim eitc with 2019 earned income if u only have unemployment in 2020

AlanT222

Level 15

No. Unemployment is not considered "earned income" for the purpose of claiming the earned income tax credit.

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Jessie bAuthor

Level 2

If your earned income was higher in tax year 2019 than in tax year 2020, you can use the 2019 amount to calculate your EITC for 2020.

JohnB5677

Level 15

Yes, There is a “lookback” option that allows you to use your 2019 amounts for earned income credit or child tax credit. You can pick whichever amount gives you a better tax refund for your 2020 refund.

You can go to the earned income credit section in Deductions and Credits.

You still MUST enter all of your 2020 income into your 2020 tax return, including any unemployment you received.

Please follow these steps in TurboTax:

Login to your TurboTax Account
Click on the Search box on the top and type "EIC"
Click on “Jump to EIC”
Answer the questions until you reach the screen "Do you want to use last year’s earned income?"
Note your current refund amount using your 2020 earned income at the top of the screen.
Click "Yes", enter your "2019 Earned Income" if the field is blank and click "continue".
Compare the new refund amount using your 2019 earned income with the previously noted refund amount using your 2020 earned income.