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Level 2
posted Jan 9, 2021 9:31:17 PM

How do I use the new law on earned income tax credit. How can I use my 2019 earned income for 2020. I also have a child this year but I don't understand how to do it?

I didn't qualify for this years income tax credit or child tax credit, me being out of work. How do I figure out where or how on my taxes to get the new law to use my 2019 earned income instead of my no income this year.

0 12 2034
12 Replies
Level 15
Jan 9, 2021 9:49:27 PM

What new law are you talking about?   I know of no such law.   2020 EIC is based on your 2020 earned income and total AGI, not 2019 income.

Level 15
Jan 9, 2021 9:53:59 PM

@macuser_22 

 

There is a lookback that will allow you to choose using your 2019 income for EIC on the 2020 return,  It is in the EIC section.  

 

(I had a screenshot but messed it up...sorry)

Level 15
Jan 9, 2021 9:59:09 PM
Level 15
Jan 9, 2021 10:14:43 PM

I stand corrected.  I could not find it in any IRS pub but it in in the 1040 instructions.

Level 15
Jan 9, 2021 10:31:34 PM

@macuser_22 Seems like there are a few more little surprises----found out about this one a few hours ago.  Self-employed parents who missed work due to children doing remote learning can get up to 50 days of sick leave credit capped at $200/day

 

https://www.irs.gov/pub/irs-dft/f7202--dft.pdf

Level 2
Jan 9, 2021 10:38:28 PM

 

Level 2
Jan 9, 2021 11:26:03 PM

It won't give me the option or I can't find it. 

Level 15
Jan 10, 2021 4:53:28 AM

Look for these screens in the EIC interview section of the return after you have entered in all your income and dependents ...

 

 

 

Returning Member
Feb 11, 2021 5:51:39 PM

I can not get a screen to give me the choice of using 2019 income.  It insists on using 2020 which includes some unemployment. I also tried to fix it in the work sheet but still leaves line 11 as 2020 income. I made sure software updated

Expert Alumni
Feb 11, 2021 6:08:47 PM

Try this.  

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.

Returning Member
Feb 12, 2021 8:37:31 AM

Same question. I have already tried the forum answers  and email answers multiple times. I can NOT get an interview screen to allow me to choose between 2019 and 2020 income for earned income credit.IT skips directly to one that says my 2020 income is too high

 I also can not override the worksheet which  always has 2020 income on line 9  even though the rest of sheet had the 2019 autopopulated (from when I transferred the 2019 return to  create a 2020 return.) I can check the box for 2019 or 2020 but either way line 9 never changes

Level 15
Feb 12, 2021 10:29:17 AM

The 2019 lookback function can ONLY be used if the 2020 earned income is less than the 2019 earned income.  So if your 2020  earned  income it too high to get the EIC you cannot use the prior year info instead to force a credit to populate.