What is the Advanced Earned Income Credit?
This is an amount given to employees who qualify for the Earned Income Credit and elect to receive it before their tax filing period by having it added to their paychecks. According to the IRS, “To receive part of the credit with your pay, you must expect to have at least one qualifying child for the current year, expect to fall within certain income limits and expect to meet certain other conditions. You cannot get the Advance EIC if you do not expect to have a qualifying child, even if you expect to be eligible to claim the EIC on your current year tax return. To see if you qualify, obtain the current year Form W-5, Earned Income Credit Advance Payment Certificate.” The W-5 form expires at the end of each calendar year.
