DavidD66
Employee Tax Expert

Retirement tax questions

The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020 as a stimulus measure to provide relief to those affected by the pandemic. For tax year 2020, The CAA allows taxpayers to use their 2019 earned income if it was higher than their 2020 earned income in calculating the Additional Child Tax Credit (ACTC) as well as the Earned Income Tax Credit (EITC)

 

When to Use Schedule EIC: Earned Income Credit

 

I can't tell you if you prepared your return correctly without being able to see it, but if you followed the TurboTax step-by-step it should be correct.  The IRS always securitizes certain credits, like the EITC.  With the changes for 2020 they are reviewing affected tax returns very carefully.  

 

The fact that the IRS is reviewing your return does not mean there is a problem with it.  It will however, delay receipt of your refund.

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