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PYEI if I qualified for EIC in 2019

I qualified for the EIC in 2019 and was on the upper limits of receiving this benefit - but did receive it.  However, in 2020 I'm a mere $400 over the income limit (forced overtime).  The information I'm reading seem to suggest this is only an option if your income in 2020 was less and then disqualified you for not working enough.  Incidentally, I'm filing "head of household" with 2 dependents 18 or younger. 

 

Can I use PYEI to qualify in 2020 even if my 2019 income was less?  

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2 Replies

PYEI if I qualified for EIC in 2019

If your income is above the limits, you wont even have this option in TurboTax to use PYEI.  This option is only available for taxpayers who are qualified in 2020. 

DawnC
Employee Tax Expert

PYEI if I qualified for EIC in 2019

Correct, because EIC uses your 2020 AGI and earned income to determine eligibility.  If your 2020 AGI is too high, you will not be given the option of choosing which year of earned income you would like to use, because it will not matter - you don't qualify.   On the other hand, if your 2020 AGI qualifies you, you will be given a choice of using 2019 or 2020 earned income to figure the credit.   The lookback provision only applies to the earned income part - you have to use 2020's AGI, you can't use 2019 AGI.    And both numbers are used to figure the credit.   @Vika K

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