How do I use my 2019 Earned Income to claim the Earned Income Credit (EIC) or Child Tax Credit on my 2020 return for COVID-19 relief purposes?

For tax year 2020, taxpayers impacted by COVID19 can elect to use either the 2019 or 2020 earned income to figure the 2020 earned income tax credit or the 2020 child tax credit. You will need your 2019 return with your earned income listed to complete this within the program. If you do not have your 2019 return, you can request a transcript of the return on the IRS website. 

How do I make this election in the program?

Please log into the account and follow these steps:

1. Basic Information
2. Personal Information
3. Additional Personal Information
4. Check the box indicating "Your Name wishes to elect to use their 2019 earned income to figure their 2020 earned income credit and/or child tax credit."

You will then be asked to enter

• the designation (Covid19)
• the Prior Year Earned Income
• any nontaxable combat pay you or your spouse reported

Why isn't the program using my 2019 amount? 

According to the IRS, you cannot use the 2019 amount if:

1. Your 2019 earned income is not more than your 2020 earned income, the program will use the 2020 amount calculated in the program. 
2. You do not have Earned Income on the 2020 return.