Earned Income Tax Credit (EITC) Lookback to 2019

For 2021 tax returns, wage earners who had their income drop will be pleased that the retroactive provision of the Earned Income Tax Credit which allowed taxpayers to use their 2019 earned income to calculate the credit for Tax Year 2020 is allowing taxpayers to use it again for 2021.

Taxpayers will be allowed to calculate their Earned Income Tax Credit for 2021 using their 2019 earned income if 2021 earned income is less than it was in 2019. Even more reason for everyone to research the new tax laws or make sure their tax preparer/CPA is CURRENT with all the tax law changes.

If self-prepared, make sure you look at your 2019 return for the information to be used. It will be EXTRA important that you take their 2019 tax return to your tax preparer/CPA (or include it in documents sent virtually). If the tax preparer/CPA says they do not need the copy (unless they actually prepared your 2019 and already have a copy) then you need to ask them why they are not following the latest tax laws. Even if they did prepare your 2019, ask if they are following the new tax law regarding the Lookback to 2019.

Don’t miss out on credits!
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