How do I go about getting the special look back for earned income and child tax credit from 2019

[NCperson]

if you mean as part of the tax law from last week, that will be part of the 2020 tax return.  Broadly, if your 2020 income is less than your 2019 income, you can use your 2019 income to calculate these tax credits, if it is to your advantage.  Depending on the math, it may still be better to use the 2020 income to calculate these credits. Once programmed, I suspect TT will handle this for you. 

[Critter-3]

Agreed ... the EIC section will probably have a screen where it will  be asking about this  ONCE the program has been redone to include this last minute change ... this updating process can take at least a couple of weeks until it is integrated and operational.   BUT since the IRS will not start processing returns with EIC on them until 2/15 there is time to wait.  

[deckersmith]

I am a bit confused about this tax break. I have read that the individual gets to choose the income on this credit that will give them the biggest tax break. For example, if the individual earned more in 2020 than they did in 2019, that they can choose the 2019 income if it gives the larger deduction. 

I have also heard that you can only choose the 2019 income if you earned less in 2020, but the individual still gets to choose the income most helpful to them.  

Does anyone know exactly what gets to be done?

Also, anyone know when Turbo Tax may have the program updated so we can choose and just get our taxes done?

[NCperson]

Submitting taxes doesn't begin until Jan 27 - that is IRS provided date

the confusion you state regarding EITC is the reason it is best to wait for TT to program in the rule - so there is no guessing,  The IRS reviews TT software before it is released. 

I can find no definitive source (and can't find it in the 5000 page bill that was passed last week - I looked!!!)

However, since Congress was looking for ways to compensate those impacted by COVID, I would be hard pressed if they passed a law that said if your income is higher in 2020 than 2019 you can use 2019 income to benefit additionally from these tax benefits. If your income was higher in 2020 than 2019, how were you harmed by COVID? 

So it does make more sense (but in the end Congress does what Congress does!) that if you were harmed in 2020 (meaning your income was lower) that you can use 2019 income for certain tax benefits if that is to your benefit. 

[Critter-3]

First ... since any returns with EIC and/or ACTC on them will not process before 2/15 none of those returns should be filed early so they all have time for the EIC section to be updated.

Next ... the ability to use the 2019 or 2020 income for computing the EIC  follows the same rule for the military where they can choose to include or exclude the non taxable combat pay to get the most credit allowed. 

Thus if you made more in 2020 you may not be eligible for the EIC  thus using the lower 2019 income may be better for you ...  and if your 2020 income is less than 2019 then the 2019 income may actually be better for the EIC.   It works both ways. 

[NCperson]

Special lookback for Earned Income Credit and Child Tax Credit

• Special temporary rule allowing lower-income individuals to use their earned income from tax year 2019 to determine the Earned Income Tax Credit and the refundable portion of the Child Tax Credit (i.e., the Additional Child Tax Credit) in the 2020 tax year.
• Key takeaway: 
• This will help workers who experienced lower wages this year, due to the pandemic, to get a larger refund that is consistent with their earnings from prior filing seasons.

https://www.cpapracticeadvisor.com/tax-compliance/news/21204086/whats-in-the-new-covid-relief-law

[Critter-3]

I look forward to seeing something soon either directly from the IRS and/or my Professional tax program ... they will probably issue something this week coming up .... until then I also found this : 

Strengthened Earned Income Tax Credit and Child Tax Credit: The agreement helps
ensure that families who have faced unemployment or reduced wages during the
pandemic are able to receive a strong tax credit based on their 2019 income, preserving
these vital income supports for vulnerable families.

https://www.paproviders.org/wp-content/uploads/2020/12/jep_al_122120_Congress-Reaches-Agreement-on-N...