I'm not seeing the loopback option for the Earned Income Credit on the self-employed business edition. Could someone tell me how to find it?

[smithandsons4933]

That should be look back option

[MarilynG1]

Use the magnifying glass at the upper right and type in 'earned income credit'.  Then click on 'Jump to Earned Income Credit'.

This is in the Deductions & Credits section of your Federal return.

In the interview for this section, you will be asked if you want to use your 2019 or 2020 income to qualify for the credit (screenshot). 

Click this link for more info on qualifying for the Earned Income Credit.

[smithandsons4933]

I'm using the self employed version and that option doesn't appear. I've tried repeatedly.  

[smithandsons4933]

I believe it's because we actually made more this year due to unemployment.  Unfortunately because this year's income was more, the look back option doesn't apply.

[MarilynG1]

The fact that your income is higher in 2020 than 2019 would not disqualify you from receiving the Earned Income Credit.  Unemployment does not count as 'earned income' for the Earned Income Credit (EIC).  W-2 or Self-Employment income does.  

If you received the credit in 2019, you can choose to use your 2019 income to qualify.  

Click this link for more info Qualifying for the EIC if Unemployed.  

See the screenshot below to Review the EIC in the Deductions & Credits section.  

[smithandsons4933]

I was hoping that would be the case but the Turbo Tax software doesn’t give me the option of using 2019 because my AGI is higher in 2020 with unemployment, even though unemployment is not earned income it is part of my AGI. If you look at the screenshot of the option to use the income from 2019, it says if your income was greater you can use 2019 income. It should offer you the option of trying both but unfortunately, it doesn’t if your income is higher in 2020. 

[smithandsons4933]

It's exactly what I thought, I removed the unemployment, then it gave me the look back option but when I added back in the unemployment, it takes away the look back option because my 2020 AGI with unemployment is higher than 2019.  Not sure if that's the rule for the look back option or if it's an error with Turbo Tax and their interpretation. 

[smithandsons4933]

I did chat with an agent and the look back option is only for if you made MORE in 2019,  with unemployment if you made more in 2020, it doesn't apply. 

[AmyC]

Yes, the Earned Income Credit uses the higher of 2019 or 2020 income.