If you expect to qualify for the earned income credit in 1999, you
may be able to start getting part of the credit with your pay now, instead
of waiting until you file your 1999 tax return in 2000. This is called
Advance Earned Income Credit or Advance EIC.
To get part of the credit with your pay, you must expect to have
at least one qualifying child for 1999, and meet certain other conditions.
You cannot get the Advance EIC if you do not expect to have a qualifying
child, even if you will be eligible to claim the EIC on your 1999 return.
To see if you qualify, get the 1999 Form
W-5, Earned Income Credit Advance Payment Certificate, from
your employer or call 1-800-829-3676.
If you qualify, complete Form W-5 and give it to your employer. Your
employer will then include part of the credit regularly in your pay.
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 should
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, you should give your employer a new Form W-5 if you
no longer 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 1999, you must
file Form 1040A or Form
1040 for 1999, 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 1999 Form W-2.
The 1999 Form W-5 expires on December 31, 1999. If you expect to
be able to claim the credit in advance for 2000, you must give a new 2000
Form W-5 to your employer.
For information on who can claim the EIC for 1998, select Topic
601. Publication 596 and
Schedule EIC can be downloaded
from this site, or ordered by calling 1-800-829-3676.
If you are an employer and want more information about the advance
payment and how it affects you, select Topic 754.
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