Deductions & credits

Yes, if you had unemployment income (not "earned" income) in 2020, you can avoid losing the Earned Income Tax Credit by using the "lookback" rule.  This means that you can look back to your 2019 income instead.  The idea behind it is that due to COVID19, people who lost their jobs or became unemployed in 2020 would lose the credit or get a reduction to what they would normally be entitled.  That could also mean the difference between a refund or even owing taxes.  Being able to look back to 2019 can help avoid that problem.

 

Here is a TurboTax article with more information about the Earned Income Tax Credit.

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