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mrdthl
New Member

How do i apply for the advanced earned income credit?

 
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5 Replies

How do i apply for the advanced earned income credit?

Talk to your employer about the Advance Earned Income Credit as they are the ones who must make the advance payments to their employees from the employment taxes they would normally deposit or send to the IRS.

Advanced EIC payroll instructions for employers are in the standard IRS publication for employers, The Employers Tax Guide, Circular E. The amount is paid to the employees -- with no income tax withheld.

How do i apply for the advanced earned income credit?

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.

Lilsteph
New Member

How do i apply for the advanced earned income credit?

So who do I apply the earned income credit with

How do i apply for the advanced earned income credit?

The advanced EIC can be applied for through your employer.  To receive advance EITC payments, the employee must provide a completed Form W-5, Earned Income Credit Advance Payment Certificate to your employer.  The employer is required to make advance EITC payments to an employee who provides the form.  For more information, check this link to the IRS website.

 

@Lilsteph

 

 

How do i apply for the advanced earned income credit?

@ReneeM7122   I thought Congress did away with that several years ago.  Could the poster be referring to some state tax credit?  The IRS website has no current Form W-5.

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