JZGilleo
Level 3
‎02-04-2022 01:43 PM

 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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TaxGuyBill
Level 15
‎02-04-2022 02:03 PM

Use only HER Earned Income.

JZGilleo
Level 3
‎02-04-2022 02:24 PM

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!

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Terry53029
Level 15
Level 15
‎02-05-2022 11:01 AM

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...

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