The TurboTax software didn't automatically check for the "lookback" option when attempting to claim the EIC. Will it be applied (I did file with TT online last year).

[Daewoozy]

TT software didn't give me any of the EIC credit this year. But last year I received some of the EIC. So it should have checked that. Now it hasn't been sent to IRS but it doesn't give me any credit for EIC, due to a increase of income from unemployment benefits this year. Will TurboTax auto fix this? I can't access or amend return currently. But this seems to be a lapse in software that doesn't give greatest rebate available.

[Cynthiad66]

Turbotax does not make the decision to file using the Lookback rule for you.  You must make that decision within the software.  If you have already transmitted your tax return to the IRS, then you will need to Amend the 2020 to do take advantage of the LookBack rule for the Earned Income Credit.

If you're referring to the IRS Taxpayer Certainty and Disaster Tax Relief Act of 2020 EIC special look back provision, see the steps below.

1. Type EIC in the search and select the Jump to.
2. Continue with the onscreen interview until you get to the Do you want to use last year's earned income? screen.
3. Continue with the onscreen interview until complete. 

Per IRS: If your earned income was higher in 2019 than in 2020, you can use the 2019 amount to figure your EITC for 2020. This temporary relief is provided through the Taxpayer Certainty and Disaster Tax Relief Act of 2020. 

Note: If you earned income was higher in 2020 versus 2019, you won't be able to use the EIC special look back.

 

Special Lookback for Earned Income Tax Credit and the Child Tax Credit

This is a very important provision which has the potential to help workers who experienced lower income in 2020, or received unemployment income in lieu of their regular wages, get bigger tax credits and larger refunds in the coming year.

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.

The Earned Income Tax Credit is the country’s largest program for working people with low to moderate income. More than 25 million eligible tax filers received federal Earned Income Tax Credit last tax season and the average Earned Income Tax Credit was $2,476 per filer.

[theelite1x87]

Ok. I was wondering this. I did not know what the look-back option was when I filed. Unfortunately didn't know until after theyve been accepted. However, you mention if your earned income in higher in 2020 then you cannot use lookback? How is earned income defined, are you saying Adjusted Gross? My adjusted gross income is about 2500 dollars more in 2020 versus 2019 so if based on that, I could not use lookback. But my Box 1 "wages, salaries etc" on form 1040 is actually about 500 bucks less than tax year 2019. Reason is about 2100 bucks of my income from 2020 was unemployment income so my income from work is slightly less than 2019 but my adjusted gross is actually more. 

Just wanted to clarify if I CAN use the lookback so I can decide if I want to go through the ordeal of amending the return that was JUST accepted...

[Cynthiad66]

Taxable earned income includes:

Wages, salaries, tips, and other taxable employee compensation; Union strike benefits; Disability retirement benefits received prior to minimum retirement age;  (See definition of statutory employee on our Helpful Definitions and Acronyms for the EITC page)

This new lookback rule, which was part of the Taxpayer Certainty and Disaster Tax Relief Act of 2020, may allow certain taxpayers to claim these valuable credits based on their 2019 earned income when it is higher than their 2020 earned income.

TurboTax allows you to amend your return free.  So, you should use the system to play with the numbers to see what works best.  Since you have used Turbotax all of the information is there already and all you have to do is:

1. Sign in to TurboTax.
2. Scroll down to Your tax return & documents (you may need to select Show), select 2020 and then Amend (change) return.
   • If you only see the option to amend 2019 or earlier, it's because you can't amend an unfiled 2020 return. Instead, just select Pick up where you left off, make your changes, and disregard the rest of these instructions.
3. Select Amend using TurboTax Online.
4. Carefully follow the instructions. Don't worry if your refund changes to $0. This is normal on amended returns.
5. You can e-file your 2020 amended federal tax return, but most states require amendments to be printed and filed by mail.
6. If e-filing, you’ll review, sign and transmit your federal return. If not, we'll give you instructions to print and mail your amended return.

Three weeks after mailing your amended return, you can start tracking it at the IRS Where's My Amended Return? tracking tool.  Please allow at least 16 weeks for the IRS to process your amended return.

Processing times for amended state returns vary from state to state. If it's been more than 12 weeks since you mailed your amended state return, and you haven't heard anything, we suggest you contact your state tax agency.

[theelite1x87]

My 2020 taxes were already accepted by the IRS. But I do not get any option to amend a 2020 return. I can only do that with 2019 or earlier. But since it was already accepted, I also have no option to "pick up where I left off" so i cant play with any figures either.

[PattiF]

The federal Form 1040-X has not yet been released by the IRS. It is expected to be available in mid to late March.

Please see the list of IRS forms availability IRS Forms Availability

[Taradactyl83]

I am in the same boat, and my income was greater in 2019 as 2020 unemploymemt does not count as income. I need to amend my 2020 accepted and fully processed returns using the lookback rule. I was told amending through turbo tax would be available 3/25 but it's 4/1 and its still unavailable. I don't have a printer to paper file 1040x and my local library is closed.due to covid ( where I print documents). I need to e-file my amendment and the irs.gov site says that this is possible now for 2020.  I paid federal taxes, got state return and paid all EDD taxes with every certification.  When will people who have filed their returns and are in the catagorie of those who have to amend returns due to new legislation after tax season opened be able to do so online???????  

[CatinaT1]

This article should help you  amend your return.   

You can e-file your 2020 amended federal tax return, but most states require amendments to be printed and filed by mail. 

Allow 16 weeks for processing. 

See this TurboTax FAQ for help with amending. 

You can check the status of your amended return here, but allow 3 weeks after filing for it to show up. 

[Kdillard47]

I used the look back option and the irs still used my 2020 income for the EIC! So now my refund says I’m getting 4K less because of it, and idea of what I can do to get this fixed?

[Cynthiad66]

You can amend your return if you find that it is incorrect.  You may want to call the IRS first to determine the reason why your refund was actually adjusted.  Here is how to amend:

First, make sure you really need to amend and that your 2020 return was accepted in TurboTax Online or paper-filed through the mail. You can't amend a return that hasn't been filed yet.

When you're ready to amend, find your situation below and follow the instructions.

TurboTax Online

TurboTax CD/Download

[xalwaysanxiousx]

This same thing happened to me! TurboTax confirmed that I wanted to use my 2019 AGI and also confirmed the amount, but somehow the system left my 2019 AGI off of my return completely and I lost about $4k bc of it also. Did you ever figure out how to fix this??