IRS News Release  
July 29, 1991

Taxpayers Can Get Part of
Their 1991 Tax Refund Now

As many as 14 million families may qualify for the earned income tax credit this year. The good news is that they don't have to wait until next year to get it.

Individuals who expect their income to be less than $21,250 and have a qualifying child living with them for more than six months during the year may be able to get up to $1,192 of the credit in advance. Workers can get the advance payment in their pay instead of waiting to file their 1991 federal tax return next year to get the credit.

A "qualifying child" includes a son, daughter, adopted child, grandchild, stepchild, or foster child who is age 18 or younger unless he or she is a full-time student. A full-time students may be age 23 or younger. There is no age limit for a child who is permanently and totally disabled.

While the maximum advance earned income credit is limited to $1,192, the actual maximum credit for 1991 can be as much as $2,020, up from $953 last year. Individuals may be entitled to a larger credit on their 1991 federal tax returns if they have more than one qualifying child, a qualifying child born in 1991 or pay health insurance premiums that cover a qualifying child.

Those who want to get the advance payment in their pay must complete Form W-5, Earned Income Credit Advance Payment Certificate. The Form W-5 must be given to the worker's employer who will calculate the amount the worker can get based on his or her wages.

Form W-5 is available at many local IRS offices or can be ordered by calling 1-800-829-3676.

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