Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Jessie b
Level 2

Eitc

Can u claim eitc with 2019 earned income if u only have unemployment in 2020 

5 Replies
AlanT222
Expert Alumni

Eitc

No.  Unemployment is not considered "earned income" for the purpose of claiming the earned income tax credit.  

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Jessie b
Level 2

Eitc

If your earned income was higher in tax year 2019 than in tax year 2020, you can use the 2019 amount to calculate your EITC for 2020. 

JohnB5677
Expert Alumni

Eitc

Yes, There is a “lookback” option that allows you to use your 2019 amounts for earned income credit or child tax credit.   You can pick whichever amount gives you a better tax refund for your 2020 refund.

 

You can go to 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.

 

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.

I want to use my 2019 tax return to file for 2020 ... (intuit.com)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Jessie b
Level 2

Eitc

So even if I had no earned income in 2020 only unemployment I can still use my 2019 earned income for the eitc?

AnnetteB6
Expert Alumni

Eitc

Yes, you can use your 2019 earned income to calculate the Earned Income Tax Credit for your 2020 tax return.  This is a temporary situation for the 2020 tax return provided by the Taxpayer Certainty and Disaster Tax Relief Act of 2020.

 

Use the following link for more information:  IRS EITC Assistant

 

 

@Jessie b

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v