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Submitted By: someone
Answered: March 1, 2021 9:00 pm
Answered: March 1, 2021 9:00 pm
I heard I could use my 2019 earned income instead of my 2020 earned income in figuring my earned income tax credit for 2020. Is this true?
Yes. The Consolidated Appropriations Act, 2021, created a one-year opportunity. Use the prior year’s income if it results in a larger earned income tax credit. But don’t if it results in reducing or barring the credit.
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Tax Glossary
Adjusted basis
A statutory term describing the cost used to determine your profit or loss from a sale or exchange of property. It is generally your original cost, increased by capital improvements, and decreased by depreciation, depletion, and other capital write-offs.
