If you are referring to retirement plan distributions under the CARES act -
The IRS is finalizing a new Form 8915-E, Qualified 2020 Disaster Retirement Plan Distributions and Repayments
(Use for Coronavirus-Related Distributions)
The form 8915-E and instructions are still in a draft state. The IRS has not communicated when this form will be finalized for use with the 2020 federal tax return. When that occurs TurboTax will incorporate the form and instructions into the software.
Estimates are that this form will be available sometime in February.
No I was referring to being able to reflect on your 2019 income and compare to your 2020 income for the child tax credit and earned income credit and choose whichever year gives you the higher refund.
@sraple wrote:
No I was referring to being able to reflect on your 2019 income and compare to your 2020 income for the child tax credit and earned income credit and choose whichever year gives you the higher refund.
For the EIC you have to go through that section and select the year you want to use for the EIC
Enter eic in the Search box located in the upper right of the program screen. Click on Jump to eic
For the Child Tax Credit you have to go through that section and select the year you want to us for the CTC
Enter child tax credit in the Search box located in the upper right of the program screen. Click on Jump to child tax credit
Hmm.. It doesn’t give me that option. I must be missing something here.
As you go through the interview for the Earned Income Credit, you will come to the screen, Do you want to use last year's earned income? [See screenshot below.]
For the Child and Other Dependent Tax Credits, the first screen after entering the interview asks Do you want to use last year's earned income? Mark the Yes radio button and enter your 2019 earned income.
NOTE:
In the desktop version of TurboTax, in the EIC section, you will see a screen, Did your earned income decrease in 2020? Mark the appropriate radio button and continue with the interview.
Mine just says nope sorry you don’t qualify for the credit. I didn’t work in 2020 but I worked all of 2019. I had my first child in 2020.
I wonder if it’s because I started my return before they updated the software? I tried filing my return about a week or two ago but realized the software wasn’t updated with the new tax laws.. and on my side it still looks like they aren’t.
But it never gives me any option to enter to 2019 info, never asks if my income decreased in 2020 or any of that. I click on your family, the first tab is child tax credit and it immediately says “sorry you don’t qualify for this credit.” When I click on “why don’t I qualify?” It says “we see you have a qualifying dependent but based on your income you don’t qualify for this credit.”
@sraple wrote:
But it never gives me any option to enter to 2019 info, never asks if my income decreased in 2020 or any of that. I click on your family, the first tab is child tax credit and it immediately says “sorry you don’t qualify for this credit.” When I click on “why don’t I qualify?” It says “we see you have a qualifying dependent but based on your income you don’t qualify for this credit.”
Did you follow the procedure as posted by @Irene2805 ?
Did you see the screen shown in the answer?
If not, clear your tax return and start over.
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.
Yes, I followed her procerdure and I do not see that screen. I went ahead and cleared the return as instructed and it’s still saying I don’t qualify for EIC or CTC with no options to enter any 2019. Oh well, I give up I will file somewhere else.
@sraple wrote:
Yes, I followed her procerdure and I do not see that screen. I went ahead and cleared the return as instructed and it’s still saying I don’t qualify for EIC or CTC with no options to enter any 2019. Oh well, I give up I will file somewhere else.
You have to enter income on the 2020 federal tax return to be eligible for the Child Tax Credit. Since you have no income in 2020 you cannot use 2019 income for the child tax credit.
Hello new parent that hasn't slept right in months, if the program is not giving you either EIC or CTC credits then your issue is probably back in the MyInfo tab where you entered your new dependent. Go back and review your dependents information and look for two specific screens where you probably made an error...the first screen is the child live with you all year that screen told you since the child was born in 2020 to put down all 12 months. You probably didn't read that screen carefully enough and your sleep deprived state. The second screen where you possibly made an error is it ask if the child provided more than 50% of their support it did not ask if you supported the child. So unless this is a trust fund baby that owns the home you live in and pays you to care for it the answer on that screen should be no.
Hmm weird.. I get the credit over on free tax USA even though I had no income for 2020. I usually use turbo tax to file though.
Filing with zero income has not yet been addressed completely. The IRS is looking at options before they begin accepting returns on February 12. There may be a better option coming for you.
Each tax service chooses how to implement rough drafts and "maybes" within the IRS so you could have a different outcome at a different tax location until the IRS finalizes their decision.
I suggest you wait until closer to the IRS opening on February 12 and see what has been decided.
You CAN efile a 2020 return even if you have no income because the refundable stimulus credit will allow it ... there will not be a non filer option this year since the regular filing methods will work. I cannot see the IRS opening up a non filer option again since the regular filing options will work just fine. Last year that temporary non filer site confused those who really did need to file forcing many to paper file an amended return ... I hope we don't have a repeat of that disaster when you can use one of the IRS FREE FILE options instead.
If you qualify you can use one of the 10 IRS FREE FILE options to file a fed & state return for free ... but you must log in thru the IRS site :
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
For Filing Season 2021, you must make $72,000 or below to use one of the 10 IRS Free File partner offers.
If you choose the TT option then you can log in with your same user ID and agree to switch to the FREE FILE option then your progress will be preserved.
The ability to choose your 2019 income instead of your 2020 income (in case you did not have Earned Income and may not qualify) for the Child Tax Credit and Earned Income Credit is incorporated into TurboTax now depending on your platform. It would be best to wait until after the IRS starts accepting returns on February 12, 2021 for all updates to be finalized.
Yes, waiting until closer to the 12th or even on the 12th is the best solution.
IS there any update to this question yet? Do we know when they will have this information available in turbo tax?
@tcooper624 wrote:
IS there any update to this question yet? Do we know when they will have this information available in turbo tax?
The IRS has a new Form 8915-E for COVID-19 related retirement account withdrawals. This form has not been finalized by the IRS for filing with a 2020 federal tax return. The IRS has not announced when this form will be available. Once available it will be included in the TurboTax software.
We estimate the form may be available sometime in February.