topic Re: 2020 EIC using 2019 earnings with 0 earnings for 2020 do I have to enter 2019 W2? I keep receiving message I have to add W2 but I have none for 2020. Is that correct? in Deductions & credits

2020 EIC using 2019 earnings with 0 earnings for 2020 do I have to enter 2019 W2? I keep receiving message I have to add W2 but I have none for 2020. Is that correct?

hyhchick — Tue, 09 Mar 2021 16:04:48 GMT

Re: 2020 EIC using 2019 earnings with 0 earnings for 2020 do I have to enter 2019 W2? I keep receiving message I have to add W2 but I have none for 2020. Is that correct?

xmasbaby0 — Tue, 09 Mar 2021 16:09:05 GMT

NO you do not enter a 2019 W-2. Only 2020 income can be entered on your 2020 tax return. You are confused by something you heard or read about a 2019 lookback.

Many people had lower incomes during the pandemic in 2020 due to reduced work hours, layoffs, etc. Or they received unemployment benefits. These factors affect how much earned income credit and additional child tax credit you can get on your 2020 tax return and affect your 2020 refund.

There is a “lookback” option that allows you to use your 2019 amounts for earned income credit or child tax credit. You can choose whether to use your 2019 amount or your 2020 amount. Choose whichever amount gives you a better tax refund for your 2020 refund.

You can see this and choose in the earned income credit section in Deductions and Credits.

You still MUST enter all of your 2020 income into your 2020 tax return, including any unemployment you received.

Please follow these steps in TurboTax:

Login to your TurboTax Account
Click on the Search box on the top and type "EIC"
Click on “Jump to EIC”
Answer the questions until you reach the screen "Do you want to use last year’s earned income?"
Note your current refund amount using your 2020 earned income at the top of the screen.
Click "Yes", enter your "2019 Earned Income" if the field is blank and click "continue".
Compare the new refund amount using your 2019 earned income with the previously noted refund amount using your 2020 earned income.

Re: 2020 EIC using 2019 earnings with 0 earnings for 2020 do I have to enter 2019 W2? I keep receiving message I have to add W2 but I have none for 2020. Is that correct?

Bsch4477 — Tue, 09 Mar 2021 16:40:12 GMT

The IRS language is this:
If your earned income was higher in 2019 than in 2020, you can use the 2019 amount to figure your EITC for 2020.

My question is if there was no earned income in 2020 then the tax payer is not eligible for EIC. The language above could be interpreted as “if your earned income in 2019 was higher than your earned income in 2020 you can use the 2019 amount.” Strictly interpreted, the look back would not apply since there was no earned income in 2020 to compare. I wonder if the program is not allowing the look back in this situation.

Re: 2020 EIC using 2019 earnings with 0 earnings for 2020 do I have to enter 2019 W2? I keep receiving message I have to add W2 but I have none for 2020. Is that correct?

hyhchick — Tue, 09 Mar 2021 16:51:50 GMT

Thank you I did that. However when I review my return it indicates an error that I must complete a W2. In the income section I did not enter a W2 but yet the review is showing my employer from 2019 earnings. Hence my confusion. I do not know how then you delete that to finish filing.