Does your program take into account?

[jjakacky]

Does your program take into account that President Trump signed the massive COVID relief bill into law, which included a work-around: a “lookback rule” that allows filers to use either their 2019 or 2020 income for tax purposes. In regards to the EIC Tax Credit. or has T/T been updated to account for this in filing?

The earned income tax credit is a refundable tax credit for low- and moderate-income workers. (For 2020, the earned income tax credit ranges from $538 to $6,660, depending on income and number of children.) To qualify for either the EITC or Child Tax Credit, you need earned income. Unemployment benefits are not considered earned income, but they are taxable. So a taxpayer with a big chunk of income from unemployment and little “earned” income could face a sizable tax bill and little in the way of credits to offset it.

[MaryM428]

You can use your 2019 earned income to claim the EIC for 2020.  TurboTax has been updated to allow the "look back rule".

Here are the steps to follow:

• Sign into your TurboTax account > Select Search at the top right
• Type earned income tax credit
   Select Jump to earned income tax credit
  
  If you qualify for the EITC, you will see a screen that asks if you want to use 2019 earned income and select yes to use 2019 earned income to have TurboTax calculate the 2020 EIC.