Earned Income Tax Credit: How To Get Advanced Payments

You can get monthly payments from your Earned Income Tax Credit if your qualify.

Q. What is the Advance Earned Income Tax Credit (Advance EITC)?

A. The Advance EITC allows those taxpayers who expect to qualify for the Earned Income Tax Credit (EITC) and have at least one qualifying child to receive part of the credit in each paycheck during the year the taxpayer qualifies for the credit.

Q. Why should I be interested in the Advance EITC?

A. If you are working and 1.you expect your 1999 income will be below $26,928, 2.you expect to have at least one qualifying child, and 3.you expect to qualify for EITC, you can choose to get part of the credit with your paycheck. This year you may receive up to $1,387 with your paycheck if you are eligible for Advance EITC.

Q. How do I get Advance EITC payments?

A. See if you qualify for the Advance EITC payments by completing the five questions on the back of 1999 Form W-5, Earned Income Credit Advance Payment Certificate, available here or through your employer.

If you qualify, complete the bottom part of the Form W-5 and give it to your employer. Then, based on your income, your employer adds additional money to your take-home pay in each paycheck.

If your only income is from self-employment, you cannot qualify for Advance EITC payments.

Q. Could my Advance EITC payments change?

A. Yes, if during the year, your income rises above the dollar limit, or you no longer qualify for the EITC, you need to fill out a new Form W-5 and give it to your employer to stop the advance payments.

If you no longer qualify for the Advance EITC, you will have to repay all advance EITC money when you file your tax return.

Q. If I get Advance EITC do I have to file a tax return?

A. Yes. If you receive the Advance EITC, you must file a tax return. This will show the IRS the payments you received and will allow you to claim any extra credit you may be entitled to.

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