Advice: Tax Question
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I'm curious if you figured this one out yet. If not, here is your answer. You may use 2019 income if it is MORE THAN your 2020 income. If you earned more in 2020, you can't make this election. In regards to what forms you use, the form to use is 8812. It will show up on your 1040 EIC line as PYEI. Taking it a step further, the EIC will be calculated using the filing status and dependents from 2020 with zero consideration to the 2019 filing status and dependents even when you use the 2019 EIC. I hope this helps.
1 Reply
MaryMargaret Maule
from Exemplar Accounting & Tax Advisors
Before you can claim the Additional Child Tax Credit on Form 8812, you must evaluate whether your dependents meet all qualifying child requirements of the original Child Tax Credit. The child can be your:
Son
Daughter
Blood or step sibling
Stepchild
Foster child or the descendants of any of the above (such as a niece or grandchild)
The child must not turn 17 at any time during the tax year or provide more than half of their own financial support. Finally, each child you claim a credit for must have lived with you for more than half of the tax year. However, even if the child meets all of those requirements, you can't claim the credit unless you claim an exemption for each of them on your tax return; your mere eligibility to claim the child is insufficient.
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