Have you experienced a job loss or lower income in 2020? Collected unemployment and wondering if you would qualify for the Earned income tax credit? Thanks to a temporary rule provided in the The Coronavirus Response & Relief Supplemental Appropriations Act of 2021, you may be able to increase your EITC and the Additional Child Tax credit based on your 2019 tax filing.
The special temporary rule would allow lower-income individuals to use their earned income from tax year 2019 to determine the Earned Income Tax Credit and the refundable portion of the Child Tax Credit (i.e., the Additional Child Tax Credit) in the 2020 tax year.
This will help workers who experienced lower earned income in 2020, due to the pandemic, to get a larger refund based on the look-back to a prior filing season.
To learn more about the COVID-19 Relief package, click here