2019 LookBack Option and Calulation of EIC Credit on 2020 Tax Return

[wgfpd154]

I need more information on this "Look Back" option and how it then calculated and populated my credit of EIC for 2020 Taxes. It APPEARS as if my 2019 ACTUAL EIC amount was NOT entered. The program instead utilized my 2019 WAGES and AGI earned income to calculate a NEW EIC amount, which was actually $58 higher than given in 2019 due to some annual EIC raise??? My return was accepted on 2/11, as part of the IRS test batch, and I continue to wait for a DDD after 24 days now. IRS doesn't even show a return was filed, and MANY are said to have gone to ERRORS resolution department at IRS for errors in software.

Can ANYONE confirm whether or not this calculation of EIC is the correct way to compute my credit using lookback? OR was TT supposed to input exactly what I received in 2019, WITHOUT any increases? This calculation self-populated.

Since talking to IRS or getting any answers by calling them, we are pretty much attempting to find out what in the world we did wrong.

[wgfpd154]

I need more information on this "Look Back" option and how it then calculated and populated my credit of EIC for 2020 Taxes. It APPEARS as if my 2019 ACTUAL EIC amount was NOT entered. The program instead utilized my 2019 WAGES and AGI earned income to calculate a NEW EIC amount, which was actually $58 higher than given in 2019 due to some annual EIC raise??? My return was accepted on 2/11, as part of the IRS test batch, and I continue to wait for a DDD after 24 days now. IRS doesn't even show a return was filed, and MANY are said to have gone to ERRORS resolution department at IRS for errors in software.

Can ANYONE confirm whether or not this calculation of EIC is the correct way to compute my credit using lookback? OR was TT supposed to input exactly what I received in 2019, WITHOUT any increases? This calculation self-populated.

Since talking to IRS or getting any answers by calling them, we are pretty much attempting to find out what in the world we did wrong.

[ReneeM7122]

The Consolidated Appropriations Act (CAA) was signed into law on December 27, 2020 as a stimulus measure to provide relief to those affected by the pandemic. For tax year 2020, the CAA allows taxpayers to use their 2019 earned income if it was higher than their 2020 earned income in calculating the Additional Child Tax Credit (ACTC) as well as the Earned Income Tax Credit (EITC).

You would NOT use your EIC amount from your 2019 tax return to calculate the amount of the credit in 2020.  It simply allows you to use the 2019 income instead of 2020 if it is more beneficial for you to do so.  TurboTax will calculate this for you.

Here is a TurboTax article about the EIC.

[wgfpd154]

This is still a very confusing statement, and I apologize that I am not understanding the wording. I did in fact let the software populate this figure because TT already had my 2019 AGI from last year, and it made the value of EIC credit $58 dollars higher than the actual previous amount found on my 2019 tax return.

Did the software use my earned income from 2019 or wages, and then use the 2020 EIC table to find the credit using the 2020 table? If not, why would it be $58 dollars higher?

The reason this is important is that we are getting feedback that the EIC amount MUST be the same exact figure for our 2020 return, which didn't make sense to me according to the wording on the IRS main site to use the wages and calculate a figure for the credit. IT does not specify which table to use, 2019 or 2020 for the lookback.

[CatinaT1]

For the LookBack option, your earned income from 2019 will be used with the 2020 EIC table.

[jjilson]

Is there a way to amend a 2020 return for the EIC credit? Tax return was uploaded and accepted already, I accidentally used prior year and should have used 2020 income. 2020 income provided much higher EIC credit. I mis-understood the question in the app.

[JohnW152]

@jjilson

Yes, there is.

To amend your return, see the TurboTax Help article How to amend (change or correct) a return you already filed for instruction. 

To change 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 No and click Continue.
5. Once you complete the interview, you EIC will have updated.