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.

Tax Topics & FAQs | 1999 Tax Year Archives | Tax Help Archives | Home