On August 10, 2010, President Obama signed the Education Jobs and Medicare Assistance Act into law. The Act repeals the Advanced Earned Income Credit (AEIC), effective with tax year 2011.
Prior to the newest legislation, employees who were eligible for the Earned Income Credit (EIC) could elect to receive advance payments of EIC through their paycheck based on IRS wage-bracket and percentage method tables. This Act only eliminates advance payments; employees who qualify for the EIC will still be able to claim the credit at the end of the year on their personal income tax return when filing their IRS Form 1040, U.S. Individual Income Tax Return.
