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ryanjustine
New Member

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

 
8 Replies
JohnB5677
Expert Alumni

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

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)

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doriswilliams
Returning Member

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

My question is what if I didn't have income in 2019 but worked in 2020 and had a child?

DoninGA
Level 15

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?


@doriswilliams wrote:

My question is what if I didn't have income in 2019 but worked in 2020 and had a child?


If you did not have any income in 2019 then you would not be eligible for the EIC.  So you should only use the 2020 AGI where you will be eligible based on your filing status, dependents and income.

JohnW152
Expert Alumni

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

You’ll simply answer No on the page titled Do you want to use last year's earned income?.

This will allow you to use your 2020 information.  This is how EIC is normally figured. 

doriswilliams
Returning Member

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

There must be a glitch in the system because it continues to say I don't qualify.

DoninGA
Level 15

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?


@doriswilliams wrote:

There must be a glitch in the system because it continues to say I don't qualify.


The program will tell you why you do not qualify for the EITC.

 

You can also use the IRS EITC Assistant to see if you qualify - https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/use-the-eitc-assistant

doriswilliams
Returning Member

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

After I completed the questions my results state that I am qualified for EIC. Should I reload my program or ask for updates or complete my taxes online?

Your Results

Based on the information you provided, you are eligible for the Earned Income Tax Credit estimated amount of: $3,584*

This credit amount will reduce your 2020 taxes when you file your tax return with the IRS. If the credit reduces your tax to less than zero, you may get a refund.

Next Steps: How to file for the EITC

In order to receive the estimated amount of $3,584*, you must file your 2020 federal tax return. If you claim the EITC, by law the IRS cannot issue your tax refund before mid-February 2021, even the portion that is not associated with the EITC.

DoninGA
Level 15

It's asking if I want to use my 2019 EIC Instead of my 2020 EIC because it my be better, that's allowed?

@doriswilliams Clear your tax return and start over.  When you get to the section where it asks for your 2019 AGI for the EITC make sure you indicate NO.

 

If you have not paid for the online edition you are using, have not filed your tax return or registered the Free edition, then you can clear your return and start over. Click on Tax Tools on the left side of the program screen while working on the 2020 online tax return. Click on Clear & Start Over.

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