Yes, you are correct. you can use 2019 income instead of 2020 income to calculate the Earned Income Tax Credit and other credits. According to the IRS, if your earned income was higher in 2019 than in 2020, you can use the 2019 amount to figure your EITC for 2020. This temporary relief is provided through the Taxpayer Certainty and Disaster Tax Relief Act of 2020. To figure the credit, see Publication 596, Earned Income Credit.
How do I use 2019 earned income in TurboTax 2020?
- Type Earned Income Credit in the search box.
- Click to Jump to earned income credit.
- Answer the questions presented on the screen.
- Click yes for "Do you want to use last year's earned income?"
- Enter your 2019 earned income.
