@NArn002 wrote:
Hi, this is a bit concerning to see differing responses, as well as the software appearing to show that even with zero earned income in 2021, it is "ok" to claim the credit. This actually shows on the screen as a choice as to which year to apply. I read that the penalties for incorrectly completing this can include a disallowed use of the credit for up to 10 years. This makes me a bit nervous as to whether the Turbo Tax return, with a credit showing on the forms, is accurate or a problem. Keep in mind, I am following instructions in Turbo Tax.
IRS Publication 596 Earned Income Credit (EIC) page 20 - https://www.irs.gov/pub/irs-pdf/p596.pdf#page=20
Election to use prior-year earned income. You can elect to use your 2019 earned income to figure your 2021 earned income credit (EIC) if your 2019 earned income is more than your 2021 earned income. To make this election, enter the amount of your 2019 earned income on Form 1040 or 1040-SR, line 27c.
If you file a joint return and make the election, your 2019 earned income is the sum of your 2019 earned income and your spouse's 2019 earned income.
