Hi,
Thank you for the response. Quick question about that though. Her 2019 earned income is 9k which is greater than her 2020 earned income of 2k. Her 16k unemployment benefit which is taxable but is not considered as earned income. Therefore, she should be qualified for the EIC tax credit, right?
I was on the phone earlier with TurboTax support but she doesn’t quite sure how to fix it when we even switches to Form (instead of step by step) and check off on the option saying yes to use last year but nothing changed. The step-by-step doesn’t even ask for that question.
Source:
Election to use prior year earned income. You can elect to use your 2019 earned income to figure your 2020 earned income credit (EIC) if your 2019 earned income is more than your 2020 earned.
The IRS defines “earned income” as the compensation you receive from employment and self-employment. Specifically excluded from this definition is any unemployment compensation you receive from your state.
