Earned Income Tax Credit
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Level 1

Earned Income Tax Credit

I answered Yes for the Earned Income Tax Credit Question if I Earned Income was less than 2019. It reduced the return

Turbo Tax Software stated the Following:

Your refund amount decreased to (This Amount) Looks like you should elect no change.

What do you want to do?

 

???????? Any answers why it would ask this question? I uploaded last years tax information. It has the data.

If I earned less money in 2020 than 2019 should I not receive the EIC Credit? 

2 Replies
Level 15

Earned Income Tax Credit

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.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 1

Earned Income Tax Credit

Thank you very much! 

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