If you lost your job in 2020, a new tax rule could help you get valuable tax credits

January 28, 2021

A new rule may help you if you experienced job loss or change in income in 2020. To qualify for earned income tax credit, people must have earned income. Generally, earned income includes taxable employee compensation and net earnings from self-employment, as well as certain disability payments.

You can use your 2019 earned income to figure your EITC, if your 2019 earned income was more than your 2020 earned income. The same is true for the additional child tax credit.

For details, see the instructions for Form 1040 PDF.