I filed with Turbo and it gave me the option to do the look back option. When the irs processed mine it didn’t use the look back option. What can I do to fix this?

[tashab1982]

It lowered my refund by almost $5000 and I think the point of being able to do this is to not lower refund, right

[DawnC]

If the IRS changed something on your return - they will notify you.   The notice will be sent by mail and will have instructions on what you can do if you disagree with the changes they have made.  

The “lookback” rule, you can choose to use your 2019 earned income information to determine your eligibility for the Earned Income Credit and the Additional Child Tax Credit if your 2020 earned income is lower than your 2019 earned income and doing so results in a larger credit.   You still have to use your 2020 Adjusted Gross Income when filing your 2020 tax return; there is no option to use 2019 AGI when figuring your 2020 tax.   

For the EIC, you’ll also have the option to use your 2019 earned income for your 2021 return.   

[tashab1982]

That’s the thing. I selected look back option but none of the numbers match 2019. They all match 2020. So where did the look back even apply. It’s like turbo tax didn’t change the numbers when they asked if that’s what I wanted to do. So I think I have to amend but what numbers do I change 

[NCperson]

@tashab1982  for the "lookback' to have an impact, your 2020 earned income (generally AGI Line 11) needs to be LESS THAN  the same line in 2019 (generally line 8b)  It may not apply in your case.  

[tashab1982]

Ok. My earned income was way more in 2019 than 2020 that’s why I tried to use it. However turbo tax didn’t use the 2019 eic numbers on the fourth. Do I amend it and just change the eic?

[NCperson]

you probably do nothing..... TT is correct.

EIC is quite complex and the way it works in 2020 if using your 2019 income gives you more EIC than your 2020 income, then you are permitted to use 2019.  

But it is not as simple as it sounds.  In general, starting from zero income, the more you make the more EIC you get, then as some point, the more you make doesn't really change the EIC number so EIC plateaus, then the more you make the less EIC you receive.

So did you income put you on the upward slope, the plateau or the downward slope?  that impact how this works.  I suspect since you state your 2019 income  was 'way more', in 2019, your EIC was based on the 'downward slope' (meaning for every dollar of income you made, your EIC went down), and if your 2020 income was lower, 2020 probably got you more EIC

Trust that as long as you entered the 2019 income number, TT figured it out correctly.  If there was a bug, these board would "blow up".