Question

If i use last year's earned income for the bigger tax break, will i be penalized next year and have to pay it back?

Forum|Forum|4 years ago
February 21, 2022
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TurboTax Deluxe Online

No. You can elect to use your 2019 earned income to figure your 2021 earned income credit (EIC) if your 2019 earned income is more than your 2021 earned income. There will be no penalty if you use the prior year's income to calculate the Earned Income Credit if it gives you a larger credit. You will simply be taking advantage of an available option.

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