advance earned income tax credit?

Question

does anyone know anything about this or how it works?

Answer 1

This is straight from the IRS website, hope this helps.

Topic 604 - Advance Earned Income Credit

If you expect to qualify for the earned income credit for the current year, you may be able to start getting part of the credit with your pay now, instead of waiting until you file your current year tax return. This is called Advance Earned Income Credit or Advance EIC.

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, ask your employer for the current year Form W-5 (PDF), Earned Income Credit Advance Payment Certificate.

If you qualify, complete Form W–5 and give it to your employer. Your employer will then add the advance earned income credit to your net pay each pay period you are eligible.

You may have only one Form W–5 in effect with a current employer at one time. If you and your spouse are both employed, each of you must file a separate Form W–5.

If your situation changes after you give your employer Form W–5, you must give your employer a new Form W–5. For example, give your employer a new Form W–5 if you no longer expect to qualify for the EIC or you no longer want to get advance payments of the credit with your pay.

Remember, if you receive the EIC with your pay during the current year, you must file Form 1040A (PDF) or Form 1040 (PDF) for the current year to report the advance payments you received during the year and to take advantage of any remaining credit. You cannot use Form 1040EZ. The total of the advance payments you receive will be shown on your current year Form W–2.

The current year Form W–5 expires on December 31, of the current year. If you expect to be able to claim the credit in advance for the following year, you must give a new completed Form W–5 which is valid for that year to your employer.

For information on who can claim the EIC for 2006, refer to Topic 601, Publication 596 and Form 1040, Schedule EIC (PDF).

If you are an employer and want more information about the advance payment and how it affects you, refer to Topic 754.

Answer 2

The final 365 days to take the stepped forward Earned income Tax credit became into 2010. the type became right into a W-5. the government stopped this technique on condition that not many human beings have been taking benefit of it. And it is probable now not on the IRS internet site so as to not confuse human beings into thinking that it nonetheless exists.

Answer 3

Fill out a form W-5. If you have one or more children and make under 28k you can get your EIC paid to you in advance by your employer.
Be aware though that when you file your tax return you have to figure the amount you receive into the mix as you have already received it throughout the year. It will be like having no presents under the christmas tree.