Do i qualify for the EITC with 2019 lookback income from Covid relief?

[tlry408]

Hi all

Do I qualify for the earned income tax credit if i do not have any earned income at all for 2020? Only receiving unemployment for all of 2020. I have 16,000 earned income from 2019. 

I get a bigger refund in doing so but im scared its not correct that having zero Earned  in 2020 gets me the EITC by using 2019 income.

Do i also need to check the box i was affected by a natural disaster? 

[MinhT1]

The lookback rule is part of the Coronavirus tax relief package.

You do not need to indicate that you are affected by a natural disaster.

The special lookback rule will allow lower income individuals to use their earned income from 2019 to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020, since their lower 2020 income could reduce the amount they are eligible for.

Please read this TurboTax blog for more information.

To use the lookback feature for the Earned Income Tax credit in TurboTax Online, go to the Earned Income tax credit section.

1. In the Search box on the top right of your screen, enter earned income tax credit and click on Find at the right
2. In the search result box, click on Jump to earned income tax credit

1. In this section, follow the interview until you arrive at a page titled Do you want to use last year's earned income? Note down your Earned Income tax credit using your 2020 earned income.

1. Click on the radio button Yes and enter your 2019 earned income and click Continue
2. TurboTax will give you your new Earned Income tax credit using your 2019 earned income
3. If the new credit is higher, click Continue to accept it
4. If the new credit is lower, click Back to go back to the previous screen and click the radio button No then click Continue.

[Kim Luong]

Hello, can you help me with my problem: I have a W2 around 8000 and 1099G around 22000 during 2020 , when I prepare to do my tax return , I don't see option about choose 2019 income for "lookback" rule, I guest I don't qualify ? Because my total "income" in 2020 is 30000 and 2019 is 25000, but I know unemployed not as a income, so what the best way to do my 2020 return ?

[Irene2805]

To use your 2019 income for the Earned Income Tax Credit, please follow these steps:

TurboTax Online

1. On the Deductions & Credits screen, scroll down to the You and Your Family section.
2. Click the Start/Revisit box next to Earned Income Credit (EIC).
3. You will see the screen,  Do you want to use last year's earned income?  
4. Mark the Yes radio button and enter your 2019 earned income.
5. The next screen will show you how your choice affects your Earned Income Credit.

TurboTax CD/Download

1. Deductions & Credits > I'll choose what I work on.
2. On the screen, Your 2020 Deductions & Credits, in the You and Your Family section, click the Start/Update box next to Earned Income Credit (EIC).
3. On the next screen, mark the Yes radio button and click Continue.
4. On the screen, Did your earned income decrease in 2020? mark the Yes radio button and click Continue.
5. Enter your 2019 Earned Income on the next screen, Tell Us More About Your Earned Income.
6. TurboTax will show the difference on the next screen and give you the option of accepting the change.

[mbrinkman87]

My screen does not show the button to use the lookback feature. It simply tells me that I do not qualify for the credit and there are no options to use 2019 or do anything other than continue. I have tried clearing my return and starting over, and still do not receive the option.

[JohnB5677]

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)

@mbrinkman87

[nk20years]

I am preparing my 2021 tax return as single and cannot be claimed as a dependent this year. I am looking to confirm if I can use my 2019 income to qualify for the Earned Income Tax Credit. I had lower income in 2021 and do get a higher credit if I use my 2019 income, but though I had income in 2019 I was claimed as a dependent in 2019. Can I still use my 2019 income to claim the EITC Credit in 2021? I am not able to see an answer for this in any of the places I have looked. Thanks in advance to the experts who can answer this question.

N

[JohnW152]

Yes, you can use your 2019 earned income in calculating your 2021 EIC.

The IRS doesn’t state anywhere in its 2021 Publication 596 that you must have been eligible to claim EIC in 2019 for you to use your 2019 earned income in your 2021 computation.

@nk20years

[nk20years]

@JohnW152 Thank you so much for clarifying.  I was hoping to hear this from an Expert to interpret and make sure I was not missing anything. I sincerely appreciate it!