2021 Lookback rule

[ladyazymith]

I have seen quite a few posts about this already previously.

But here is my situation:

2019: I have no dependents and employed

2020: My son was born and claimed him as my dependent; Also been working until the pandemic hit and I got laid off in March. I have been receiving unemployment until it was ended mid 2021. 

2021: My 2nd son was born and will also claim him as another dependent for this year. 

Upon filing online, under the EIC credit page, at first it says I do not get any. But then under the review page, I came across that part where it states "Do you want to use last year's/2019 earned income?" 

So, I compared and 2020 shows around $400, then 2019 shows around $2k. 

I clicked 2019 and it updated the final amount on my expected return. 

I am confused now as I do not want to get this and then will owe later. Can any of the experts on here advise?

Thank you in advance.

[Bsch4477]

From what I understand you received more EIC using your 2019 earned income since it was greater. That’s good news for you. 

[VolvoGirl]

Yes,    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...