Advanced Earned Income Credit Payments

Who is eligible for advanced earned income credit payments?

If you work for someone and expect to qualify for the Earned Income Credit, you can choose to get part of the credit in advance. When you give your employer a completed W-5 form, your employer will include part of the credit regularly as part of your net pay.

This process (for advanced earned income credit payments) is only available to you if you have at least one qualifying child.

Tax filing requirements when advanced earned income credit payments are received

If you receive advanced earned income credit payments (Advanced EIC payments), you must file a federal income tax return whether or not you are otherwise required to do so. Generally, your EIC will be more than the amount received from your employer, so you should file to receive the additional amount.

Enter the amount of your advanced EIC payment (shown in box 9 of W-2 form) on line 61 of Form 1040.