topic Re: EIC crdit changed by IRS in After you file

EIC crdit changed by IRS

jrpolingx — Wed, 02 Jun 2021 15:44:28 GMT

The IRS did not recognize the EIC worksheet for using 2019 income for the EIC calculation. Is there a software glich? How do I get this fixed?

Re: EIC crdit changed by IRS

pk — Wed, 02 Jun 2021 22:53:42 GMT

@jrpolingx for tax year 2020 EIC computation should be using ONLY 2020 income -- so I don't understand your reference to 2019 income -- each year stands on its own.

Can you provide a little more detail about your situation for EIC -- generally the EIC computation used by TurboTax and IRS are the same -- comes from same table.

Re: EIC crdit changed by IRS

VolvoGirl — Wed, 02 Jun 2021 23:03:47 GMT

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.

You may use your 2019 income for the Child Tax Credit if your 2019 earned income was morethan your 2020 earned income. If your 2020 income was more than your 2019 income then you cannot use the 2019 income.

You can look back and use your 2019 income for the EIC credit instead of 2020. How to use the Lookback provision

https://ttlc.intuit.com/community/earned-income-credit/help/how-do-i-use-the-lookback-provision-to-maximize-my-earned-income-credit-or-additional-child-tax/00/2134907

Re: EIC crdit changed by IRS

jrpolingx — Thu, 03 Jun 2021 14:16:08 GMT

As I indicated in my original message, I did all that and used lower 2019 income. For some reason IRS didn't recognize it in the TurboTax electronic submittal and lowered the EIC back to 2020 income.

Re: EIC crdit changed by IRS

Critter-3 — Thu, 03 Jun 2021 14:20:15 GMT

You cannot use the lower 2019 earned income ... it must be the higher of the 2019 or 2020. Once the IRS sends you the letter of explanation then you can refute their conclusion if you can support your position. Read the notice for instructions on how to reply.

Re: EIC crdit changed by IRS

jrpolingx — Thu, 03 Jun 2021 14:27:55 GMT

Sorry senior moment. The 2019 income was the higher not lower.