Question

EIC with NO earned income turbo tax is allowing EIC why??? Help I need to file in a few days

Forum|Forum|4 years ago
October 3, 2021
1 reply
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using the TurboTax Free account, it shows I have a loss on my schedule C for 2020, however, it is calculating that I can still use my 2019 earned income and is calculating that I will actually receive the 2019 EIC? I thought I needed to have earned income in 2020 to be able to make the election to use 2020 or 2019. Can someone please explain.

TurboTax Free Edition Online

VolvoGirl

Yes, The lookback rule is part of the Coronavirus tax relief package.

The special lookback rule will allow lower income individuals to use their earned income from 2019 to determine their Earned Income Tax Credit and the refundable portion of the Child Tax Credit in 2020, since their lower 2020 income could reduce the amount they are eligible for.

You may use your 2019 income for the Child Tax Credit if your 2019 earned income was more than your 2020 earned income. If your 2020 income was more than your 2019 income then you cannot use the 2019 income.

You can look back and use your 2019 income for the EIC credit instead of 2020. How to use the Lookback provision

https://ttlc.intuit.com/community/earned-income-credit/help/how-do-i-use-the-lookback-provision-to-maximize-my-earned-income-credit-or-additional-child-tax/00/2134907

P

PbettiAuthor

Yes I understand that, however, don't i need to actually earn income? that is the question. The IRS website says that I would, but I'm not sure it takes the provision into account. I don't want to have an issue or trigger an audit. I don't have to use all the expenses, but if I can I will.