Can anyone tell me HOW to use the new "LOOKBACK RULE" and what are those "Rules" for the "RULE. Is there an include no matter what, optional or don't list if using it?

[jevon-finnih]

Congress passed a temporary provision. The provision allows taxpayers to use either their 2019 or 2020 income when claiming the Earned Income Tax Credit or Child Tax Credit. Unemployment put some families at risk of missing out or getting a smaller credit as unemployment is not considered "earned income" in the eyes of the IRS. In response, lawmakers are allowing taxpayers to pick which year's income would yield the greatest benefit.

[MinhT1]

The lookback rule is part of the Coronavirus tax relief package.

The special lookback rule will allow lower income individuals to use their earned income from 2019 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.

Please read this TurboTax blog for more information.

To use the lookback feature for the Earned Income Tax credit in TurboTax Online, go to the Earned Income tax credit section.

1. In the Search box on the top right of your screen, enter earned income tax credit and click on Find at the right
2. In the search result box, click on Jump to earned income tax credit 
3. In this section, follow the interview until you arrive at a page titled Do you want to use last year's earned income? Note down your Earned Income tax credit using your 2020 earned income.
4. Click on the radio button Yes and enter your 2019 earned income and click Continue
5. TurboTax will give you your new Earned Income tax credit using your 2019 earned income
6. If the new credit is higher, click Continue to accept it
7. If the new credit is lower, click Back to go back to the previous screen and click the radio button No then click Continue.

To use the lookback feature for the Child Tax credit in TurboTax Online, go to the Child Tax credit section.

1. In the Search box on the top right of your screen, enter child tax credit and click on Find at the right
2. In the search result box, click on Jump to child tax credit
3. In this section, follow the interview until you arrive at a page titled Do you want to use last year's earned income? Note down your Earned Income tax credit using your 2020 earned income
4. Click on the radio button Yes and enter your 2019 earned income and click Continue
5. TurboTax will give you your new child tax credit using your 2019 earned income
6. If the new credit is higher, click Continue to accept it
7. If the new credit is lower, click Back to go back to the previous screen and click the radio button No then click Continue.

[Sha27]

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[Sha27]

Need live tax expert to get my account through to credit karma aka cash app

[Vanessa A]

Are you talking about the lookback rule for Earned Income Credit?  If so, what this rule says is that if you had more income on either your 2019 or 2020 tax returns, then you can use that amount to calculate your Earned Income Tax Credit for 2021 if it means you get a higher EITC.

However, if your income is higher in 2021 than it was in 2019 or 2020, you must use the 2021 income, even if the previous years lower income would result in a higher Earned Income Tax Credit for you. 

If you are in need of product support with help getting your accounts situated, you can call 1-800-446-8848 for technical and product support. 

[DoninGA]

No, not the 2020 Income, only 2019.

TurboTax On Demand Tax Guidance -

How does using my prior-year earned income increase my Earned Income Tax Credit?

The amount you receive for the Earned Income Tax Credit (EITC) depends on whether you are married, how many qualifying children you have, and your exact amount of earned income. It varies from person to person and can change each year depending on changes in any of those factors.

The credit is a percentage of your earned income, so, the credit increases when your income increases (until you hit the cutoff amount).

Many taxpayers made less in 2021 than they did in 2019 because of COVID-19 and its impact on the economy. To make up for this, the IRS is temporarily allowing taxpayers to qualify for the EITC using whichever is higher, their 2019 or 2021 earned income.

Since the EITC depends on many factors, using your higher income may not always increase your credit, that’s why we’re helping you check to see which gives you a bigger benefit

IRS Publication 596 Earned Income Credit (EIC) 2021 - https://www.irs.gov/pub/irs-pdf/p596.pdf

Tax relief legislation.

Recent legislation provided certain tax-related benefits, including an election to use your 2019 earned income to figure your 2021 earned income credit.