2021 lookback rule

[ejnei]

The article says the legislation excludes only 2020 unemployment?

[VolvoGirl]

Only for 2020 can you exclude the 10,200 from unemployment.  That isn't the same as using your 2019 income to get a higher EIC in 2020 and 2021.   Or what are you asking about?

[wonbyjc]

I was not asked this either when I completed my taxes with Turbo Tax on 1-13-2021.  

[Shaiyla123]

Do I use my 2019 W2s and do I upload my 2020 unemployment compensation?

[ErnieS0]

Earned income does not include unemployment compensation @Shaiyla123. 

Earned income includes all of the following types of income.

1. Wages, salaries, tips, and other taxable employee pay. Employee pay is earned income only if it is taxable. Nontaxable employee pay, such as certain dependent care benefits and adoption benefits, isn't earned income. But there is an exception for nontaxable combat pay, which you can choose to include in earned income, as explained later in this chapter.
2. Net earnings from self-employment.
3. Gross income received as a statutory employee

See Publication 596, Earned Income Credit

[Shaiyla123]

Ok, thank you for clarification! Also, since I'm using the lookback feature this year, do I use my 2019 w2s? 

[JillS56]

No, not your 2019 W-2, you need to look at your 2019 return to see what your earned income was on your 2019 return.   

How to Use the Lookback to Maximize your EIC

[Shaiyla123]

Ok, so no w2s at all? I'm sorry for asking so many questions I just don't want my return rejected.

[JillS56]

Please clarify your question.   What do you have for income?   

[AlexiaRookstool]

Hello, I used the lookback in last years taxes, am I also able to use this rule again for my 2021 taxes? Will I get in trouble for using it twice?

Secondly I have no income for 2021 will it be okay to use 2019 income and receive credits? Will I get in trouble? Thanks!

[VolvoGirl]

Yes you can!   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 and 2021.

How to use the Lookback provision
https://ttlc.intuit.com/community/earned-income-credit/help/how-do-i-use-the-lookback-provision-to-m...

[AlexiaRookstool]

okay so i can use it both tax years? I'm just nervous because it seems strange to be able to claim credits and get money when I haven't made any this year.

[VolvoGirl]

Yes you can use your 2019 Income for both 2020 and 2021.

[domerdoc]

Sorry to repeat, but just to clarify:  Retirees with $0 2021 income can claim EIC in 2021 using lookback to 2019 earned income?

[xmasbaby0]

@domerdoc No.   If you did not WORK in 2021 and receive earned income you cannot get the EIC using the lookback rule.