Advanced Earned Income Credit

What is Advanced Earned Income Credit?

Employees who filed form W-5, Earned Income Credit Advance Payment Certificate, are eligible for an early award of the Earned Income Credit.

Why Advanced Earned Income Credit Matters

After filing their tax return, eligible employees get their Earned Income Tax Credit (EIC/EITC) from the federal government. The Advance Earned Income Credit gave workers a method to get a portion of the credit through their paychecks in advance. Federal income, Social Security, and Medicare taxes withheld from an employee’s salary would be used by employers to pay these credits.