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daniella_dayna
Level 2

Use Previous Year Earned Income If Made No Money in 2020?

I had no earned income in 2020 but did have earned income in 2019.  

 

Am I allowed to use 2019's earned income?

 

I've read one should use whichever year has the higher earned income, but does that still qualify if there was no earned income at all for one of the years?

 

 

 

 

 

 

2 Replies
JohnB5677
Expert Alumni

Use Previous Year Earned Income If Made No Money in 2020?

 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.

 

To claim the Earned Income Tax Credit (EITC), you must have what qualifies as earned income and meet certain adjusted gross income (AGI) and credit limits for the current, previous and upcoming tax years

 

Earned Income and Earned Income Tax Credit (EITC) Tables | Internal Revenue Service (irs.gov)

 

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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daniella_dayna
Level 2

Use Previous Year Earned Income If Made No Money in 2020?

Thank you very much for your reply!

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