Submitted By: someone
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

High deductible health plan (HDHP)

For 2007, a high deductible health plan is a health plan with an annual deductible that is not less than $1,100 for self-only coverage or $2,200 for family coverage, and with annual out-of-pocket expenses that do not exceed $5,600 or $11,200, respectively.

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