DawnC
Employee Tax Expert

Deductions & credits

Yes, the lookback provision was implemented for people in your situation.   Since you received unemployment, you will use your 2020 AGI and your 2019 earned income and the result will be higher credits.    TurboTax will automatically use your 2020 AGI, but when you go through the questions, select YES to the lookback option, and then enter your 2019 earned income amounts.   If you use your 2020 earned income of $0, you won't qualify for the EIC or Additional Child Tax Credit.   So, you will definitely want to use the lookback provision!  

 

This usually includes the total of the amounts reported on:

 

 - Form 1040, line 1 (Wages, salaries, and tips)

 - Schedule C, line 3 of Schedule 1 (net business income)

 - Schedule F, line 6 of Schedule 1 (net farm income)

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