If it asks if I want to use last years earned income for a higher refund and it increases my refund is this allowed?

[-07shayshay]

My refund is $1426 (I made less income this year) but when I say YES to use 2019 recalculate earned income it increases to $4137 Does this sound right?

[ErnieS0]

Yes, as long as the numbers are correct. If you filed with TurboTax Online last year and are using the same account, TurboTax will have your 2019 information on file. You can check what TurboTax is using as your earned income against the numbers on your 2019 return.

The federal government is allowing taxpayers to use 2019 earned income for the Earned Income Tax Credit and Child Tax Credit because many people lost their jobs and made less money. Others received most of their earnings from unemployment, which is not considered earned income. They too would receive less in tax credits if they had to use 2020 income.