I'm at a section asking me "do you want to use last years earned income". What do I do here and why am I being asked this?

[DMarkM1]

That's correct.  If your 2021 AGI exceeds the threshold for your filing status, then you will not qualify for the Earned Income Tax Credit.  The lookback is to see if you can increase the credit that you already qualify for.  

Check the EITC AGI tables here for the limits.

[MR161]

Do you have to use the deluxe pkg to get this option to get more money back

[DMarkM1]

If you had low earned income (job/W2) in tax year 2021, then it is possible you could qualify for the Earned Income Tax Credit (EITC) based on your 2019 earned income through the IRS Lookback program.  If your earned income was higher in 2019 you may qualify. 

1. Click "Yes" when asked if you wish to compare your 2019 Earned Income.
2. Click the hyperlink "Where do I find this amount?" 
3. Follow the instructions and put in your 2019 earned income in the box to allow TurboTax to make the comparison for you.

The EITC generally is available in all versions of TurboTax.

Here is a link with more information on the EITC. 

[WC3490]

I am a full time college student with 3 dependents. I did not work in 2021. Does this rule still apply? Technically, my 2019 earned income is higher than my 2021 income ($0).

[JamesG1]

You may use your 2019 income instead of your 2021 income to calculate your Earned Income Tax Credit — but only if your 2019 income is higher than your 2021 income.

You also may qualify for the EITC with qualifying children or without qualifying children.

To qualify for the EITC, you must:

• Have worked and earned income under $57,414
• Have investment income below $10,000 in the tax year 2021
• Have a valid Social Security number by the due date of your 2021 return (including extensions)
• Be a US citizens or a resident alien all year
• Not file Form 2555 (related to foreign earned income).

Have you entered all of your income?  Do you know what your adjusted gross income was from 2019?  

If your 2019 income is under $57,414, your 2019 income should return a higher EITC than your 2021 income of $0.

[jwell]

After going through this section, my tax return went down by around $1000, is there a reason this may have happened? It said I didn't qualify for the break.

[Cynthiad66]

@jwell

The refund meter at the top of TurboTax fluctuates with every entry on the return and is not accurate until you have completely prepared your return and ready to submit.

It sounds like the system was allowing you to use last years income in computing certain credits which are based on income.  However, it appears that you did not have conditions on your return where you qualify for that break. 

[Johnasor]

BC THE SYSTEM DOESN'T KNOW HOW TO REALLOCATE WITHOUT USING UPGRADED VERSION PROVIDING ENTRY OF EARNED INCOME & PROOF, THERE IS NO WAY TO UNLESS USING THE EIC FUNCTION TO BEGIN WITH AND ENTERING MORE INFO OR FILE A PAPER RETURN, OTHERWISE ITS LIKE ENTERING INCOME FROM A MISSING SOURCE, THATS AN OVERLOOKED GLITCH 

[Johnasor]

IT DOESN'T SAY INELIGIBLE,  IN FACT IT CALCULATES & ACCEPTS IT AND FURTHER DOWN THE LINE THE SOFTWARE CANNOT UNDERSTAND WHERE IT CAME FROM, ITS A GLITCH IN THE SYSTEM 

[Johnasor]

WHAT HAS HAPPENED IS : A)THE SYSTEM CANNOT DISTINGUISH BTWN EARNED & UNEARNED INCOME(SO NEITHER CAN THE TT EMPLOYEES USING IT); AND B)THE PROGRAM ITSELF CANNOT UNDERSTAND WHERE THE 2019-20 INCOME IS COMING FROM WO ITS OWN THREAD, THE INPUT MUST ORIGINATE FROM SOMEWHERE, NOT JUST MATTER-OF-FACTLY, WHICH REQUIRES UPGRADED SOFTWARE WHICH COSTS TO USE, NOT FREE VERSION

[Johnasor]

TRY FREETAXUSA.COM ITS MUCH EASIER TO USE. SORRY TTX