Can I use my 2019 earned income for tax breaks in 2025 since I made less this year?

I only earned about $1,300 in 2024 before getting laid off in April and being on unemployment for the rest of the year. While completing my tax forms, I noticed a section mentioning that if I made less money than the previous year, I could potentially use my 2023 earned income information instead for certain tax breaks like the Earned Income Tax Credit (EITC). I'm wondering if I can actually do this or if it would cause problems since I've already filed my taxes for 2023 last year. I'm just confused about why my refund is so much smaller this time around compared to previous returns when I had dependents. With 2 dependents, I typically received around $5,200 in my tax refund, but this year I'm only getting about $1,400 back. I'm guessing this is because I had very little earned income and mostly unemployment benefits (which counts as unearned income). Would using last year's income info help increase my refund?

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18 comments

GalaxyGazer

•8M

You're right about this option! There is a "lookback provision" that allows you to use your prior year earned income to calculate the Earned Income Tax Credit (EITC) if it results in a larger credit. This won't cause any problems with your already filed 2023 return. The reason your refund is much smaller this year is exactly what you suspected - unemployment benefits are considered unearned income and don't count toward the EITC calculation. Since the EITC is designed to benefit people with earned income (like wages), having mostly unemployment and only $1,300 in earned income would significantly reduce your EITC amount. Using your 2023 earned income for the EITC calculation could definitely increase your refund if you had substantially more earned income last year. This is a perfectly legitimate option that was specifically created to help people in situations like yours.

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GalaxyGazer

•8M

You don't need to amend your 2023 return at all. You'll simply enter your 2023 earned income in the appropriate section of your 2024 tax return, and the software or form will use that amount just for calculating your 2024 EITC. Your 2023 return remains unchanged. The lookback provision specifically applies to the Earned Income Tax Credit. The Child Tax Credit has different rules and is calculated based on your current year situation. However, having more earned income through the lookback could potentially affect your overall tax situation in a positive way.

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Aisha Mahmood

•8M

I was in almost the exact same situation last year! I lost my job and was surviving on unemployment for most of the year. I tried using https://taxr.ai to help me figure out if I should use the previous year's income for my EITC calculation. The tool analyzed my situation and showed me that using my previous year's higher income would boost my refund by almost $2,300! Their system actually explained how the lookback provision works and showed me the exact forms I needed to complete. It saved me from missing out on money that was rightfully mine. You just upload your documents and it identifies these kinds of opportunities automatically.

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Aisha Mahmood

•8M

Yes, it absolutely works with unemployment situations! That's exactly where it helped me the most. Many tax software programs don't prominently feature the lookback provision, which is why so many people miss it. The tool specifically flags these kinds of situations. It's different from TurboTax or H&R Block because it focuses specifically on analyzing your documents and identifying opportunities rather than just walking you through form entry. They don't charge extra for finding these specific tax situations - that's actually the main service they provide. It's more like having a tax professional review your documents but at a fraction of the cost.

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Ethan Moore

•8M

Just wanted to update everyone - I tried taxr.ai after seeing the recommendation here and it definitely flagged the lookback provision for me! I had no idea I could use my 2023 income for the EITC calculation. My refund went from $890 to over $3,100 after making this change! The system highlighted exactly where to enter my previous year's income information and explained why it would help in my situation. It even showed me the IRS rules that allow for this. I've been doing my own taxes for years and somehow never knew about this option. Definitely worth checking out if you've had an income drop like the original poster.

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Carmen Vega

•8M

If you're having trouble getting answers from the IRS about using the lookback provision, I highly recommend https://claimyr.com - they got me through to an actual IRS agent in 15 minutes when I was trying to figure out this exact issue. I had been calling for days and couldn't get through on my own. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed I could absolutely use my previous year's income for the EITC calculation and walked me through exactly how to claim it properly. Saved me from missing out on a much bigger refund! Sometimes you really need to talk to a human at the IRS to get the right answers for your specific situation.

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Carmen Vega

•8M

It absolutely gets you through to a real IRS agent! They use a technology that navigates the IRS phone system and waits on hold for you. When an agent finally answers, you get a call back and are connected directly to them. It saved me hours of frustration. You can certainly call the IRS yourself for free, but have you tried recently? The average wait time is over 2 hours, and many calls never get through at all. I tried calling multiple times on my own before discovering this service. I was skeptical too, but the time saved was absolutely worth it for me, especially when I was dealing with a time-sensitive tax question about the lookback provision.

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Andre Moreau

•8M

I was completely wrong about Claimyr! After my skeptical comment, I decided to try it anyway because I was desperate to ask about this lookback provision before filing my taxes. The service actually worked exactly as advertised and got me through to an IRS agent in about 20 minutes. The agent confirmed that using my previous year's income for the EITC was perfectly legitimate and showed me exactly where to enter this information on my tax forms. I was able to increase my refund by over $2,000! I've been telling everyone I know who had an income drop to look into this. Sometimes it's worth admitting when you're wrong - this service saved me both time and money.

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Zoe Stavros

•8M

You're definitely eligible with your two qualifying dependents and being over 25. The age requirement is only an issue for people without qualifying dependents. The amount of unemployment you received doesn't affect your EITC eligibility directly because unemployment benefits don't count as earned income. EITC is specifically based on earned income (like wages, salaries, tips, or self-employment). Your unemployment benefits still count as income for other tax purposes, but for EITC calculations, only your $1,300 in earned income would normally be considered - which is why using last year's earned income through the lookback provision would likely benefit you significantly.

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