How is the Advance Earned Income Credit determined and paid?
Eligible employees who wish to receive ADVANCE payments of the Earned Income Credit must submit a completed Form W-5 to their employer. There are three tables for determining the applicable advance payment amount. For 2007, the payment tables are identified as: • Single, Head of Household and Qualifying Widow(er) • Married Filing Jointly with spouse not filing a Certificate (Form W-5), and • Married Filing Jointly with spouse also filing a Certificate. Married employees filing Forms 1040 separately are not eligible to claim the Earned Income Credit. No carry over into subsequent years is allowed. Employee eligibility for advance earned income credit must be re-established each year. The maximum ADVANCE payment a qualified Earned Income Credit recipient may receive is $1,712, compared to $1,648 in 2006. (Single or Married Without Spouse Filing Certificate). The remaining amount of credit can be claimed by the employee on his or her annual tax return (Form 1040). For married employees wh
