KrisD15
Expert Alumni

After you file

I see, there may be a bit of confusion here. 

 

Yes, you may use your 2019 income (since it was higher) for the credits which allow for that on your Federal Tax Return. 

 

ONLY THE CREDITS USE THE 2019 INCOME, not the rest of the Federal Return and not what flows to the State Return. 

 

In other words, you report your "true" income for 2021 on your Tax Year 2021 return. THEN, when you start on the credits, such as the Earned Income Credit, if you can get a better credit using your 2019 income, the credit is calculated on that amount of income. Your 2021 income does not change, just the calculation of the credit. 

 

Enter only 2021 tax information into your TurboTax program until the program asks for your 2019 income to compute the credit(s). 

 

 

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