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Level 4
February 4, 2022

EIC - Prior year Earned Income value for Client Divorced in 2021

  • February 4, 2022
  • 1 reply
  • 6 views

 Hello All,

I have a client who divorced their spouse in 2021, and I'm not sure about which value for Earned Income I should enter for the 2019 Earned Income to compare for the credit calculation.

For the PYEI (2019), should I enter only her Earned Income or would I be required to enter the MFJ Earned Income?

Much appreciated!

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    1 reply

    Level 15
    February 4, 2022

    Use only HER Earned Income.

    Level 4
    February 4, 2022

    She only had W-2 income, so it's correct to use just her wages from 2019?

    That's what I had thought.

    Thank you!

    Intuit Community Champion
    February 5, 2022

    You can only use 2019 if 2019 is higher than 2021 earned income.

    Election to use prior-year earned income
    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.

    https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/earned-income-and-earned-income-tax-credit-eitc-tables