American Rescue Plan ’Lookback’

The American Rescue Plan of 2021 has a “lookback” provision that allows you to use your 2019 earned income instead of your 2021 earned income to calculate the Earned Income Credit (EIC) or Additional Child Tax Credit (ACTC) on your 2021 tax return if doing so makes the credit larger.

How do I claim credit for look-back?

To support economic relief from the COVID-19 pandemic, Congress passed a new 'lookback rule' which means if you earned less in 2020 or 2021, you can use your 2019 earned income for your Earned Income Tax Credit if it gets you more money.