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jacksonoutpost
Returning Member

Does the look back provision effect earned income credit you can receive? Or only the child tax credit?

 
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3 Replies

Does the look back provision effect earned income credit you can receive? Or only the child tax credit?

The “look-back” provision in the new relief bill allows them to receive EITC (and also the Child Tax Credit) based on their 2019 earned income if it would be more beneficial.

DanaB27
Expert Alumni

Does the look back provision effect earned income credit you can receive? Or only the child tax credit?

The lookback provision applies to the Earned Income Credit (EIC) and the Child Tax Credit if your 2019 earned income was more than your 2020 earned income. 

 

Please follow these steps in TurboTax:

  1. Login to your TurboTax Account 
  2. Click on the Search box on the top and type "EIC"
  3. Click on “Jump to EIC”
  4. Answer the questions until you reach the screen "Do you want to use last year’s earned income?"
  5. Note your current refund amount using your 2020 earned income at the top of the screen.
  6. Click "Yes", enter your "2019 Earned Income" if the field is blank and click "continue".
  7. Compare the new refund amount using your 2019 earned income with the previously noted refund amount using your 2020 earned income.
  8. If your new refund amount is lower click "back" and then select "No" for the "Do you want to use your 2019 income to calculate this credit instead?" question.

 Please see What are the qualifications for the Earned Income Credit (EIC or EITC)? for additional information.

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jacksonoutpost
Returning Member

Does the look back provision effect earned income credit you can receive? Or only the child tax credit?

Thank you for the reply!

Couple questions?

When I go back to that screen (I have done it multiple times) it stats that I don't qualify foe EIC due to my AGI being to high. And that our unemployment counts towards AGI. Then I continue past page and it does bring me to Look Back option. But after completing questions only acts as if effects Child Tax Credit when done. ?

Side note: I have already filed my taxes couple days ago before I realized this option existed. It never showed up when I did my taxes initially. I have program that is installed on my computer. Would filing my taxes keep me from going back and seeing if I qualify for it? I have been using Turbo Tax for years so somewhat familiar with how program works.  I don't want to amend taxes if wouldn't qualify. 

Sorry for long post. Thank You in advance!

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