Well all is not lost. You can amend your return to take advantage of that rule.
The great thing is that TurboTax will allow you to amend for Free. Here is how your amend:
If your e-filed return was rejected (you got a specific reject code), go here instead.
Looking for a prior year return? Go here.
You can amend e-filed returns if they've been accepted; paper-filed returns may be amended once they've been mailed.
If your e-file is still pending, you won't be able to make changes until the IRS either accepts or rejects it. Don't know your e-file status? Here's how to look it up.
Select your tax year for amending instructions:
Per @DawnC
The special lookback rule will allow lower-income individuals to use their earned income from 2019 (assuming it was higher in 2019 than 2020) to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020 since their lower 2020 income could reduce the amount they are eligible for.
The amount you qualify for will still be dependent on your 2020 AGI, but using the earned income amount from 2019 may provide a larger credit(s). If it does, use it, if not, use your 2020 earned income amount. TurboTax will allow you to compare the results and choose the higher credit amount. It is optional as using your 2019 earned income won't be beneficial for all taxpayers.
Please read this TurboTax blog for more information.
To use the lookback feature in TurboTax Online, go to the Earned Income Tax Credit section.
- In the Search box on the top right of your screen, enter EIC or eic and hit enter; click on Jump to eic
- Follow the interview until you arrive at a page titled Do you want to use last year's earned income? make a note of the amount of your credit using the 2020 earned income...
- Click on Yes and enter your 2019 earned income and click Continue
TurboTax will show your new Earned Income tax credit using your 2019 earned income. If the new credit is higher, click Continue to accept it. If the new credit is lower, click Back to go back to the previous screen and click the radio button No then click Continue.
Generally, earned income includes wages (including non-taxable combat pay), tips, and other payments received for services you personally performed.
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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