The Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) are credits that lower your taxes and can give you a tax refund. You can claim the credits whether you’re single or married. The EITC is available for people with and without children even if you don’t owe taxes.
For Tax Year 2020, if you earned less in 2020 than in 2019, you can “lookback” to use your 2019 earned income or use your 2020 earned income when claiming the EITC or ACTC on your taxes.
For the lookback, you’ll first need to know your total earned income – not Adjusted Gross Income – from 2019 and 2020. Earned income is usually from wages and self-employment income. If you earned less in 2020 than in 2019, then you can choose which income to use. If your 2020 earnings were higher than in 2019, you must use your 2020 income.