02/11/2021
Tax filing tip: The "Lookback" rule allows you to use your 2019 earned income if it is higher than your 2020 earned income. The Earned Income Tax Credit (EITC) is dependent upon your earned income amount. Since many people had lower income in 2020, the IRS is allowing the use of 2019 earned income if it benefits you to do so. In many cases this means an increase in your refund amount.
So be sure to bring your 2019 and 2020 documentation with you to get your taxes prepared. If you're unsure of all the tax law changes, or how stimulus payments and Covid affect your taxes, we would be happy to help. We're mobile, so we'll come to you. Call or message for a free consultation.