For 2006, employees are eligible to receive advance EIC payments only if they meet all three of these conditions:
- have a qualifying child;
- expect that their 2006 earning income and modified adjusted gross income will each be less than $32,001 ($34,001 if they expect to file a joint return for 2006); and
- expect to be able to claim the EIC for 2006
The total of advance EIC payments for the year cannot exceed $1,648. For most people, "modified adjusted gross income" includes tax-exempt interest and certain nontaxable pensions, annuities, and IRA distributions (for further details, see Publication 596, Earned Income Credit). Workfare payments (certain cash public assistance payments) are not included in earned income. For most people, "investment income" is the total of their taxable interest, ordinary dividends, capital gain distributions, and tax-exempt interest.
To begin this payment program, you must turn in a properly completed IRS Form W-5 to Payroll Services. On Form W-5, you would show whether you expect to be eligible for the EIC by showing:
whether you already have a certificate in effect for any other current employer,
whether you have a qualifying child,
whether or not you are married, and if you are married, whether your spouse has a certificate in effect with any employer.
If you qualify for EIC, you may be entitled to a maximum of $68.66 per semi-monthly pay cycle.
IRS Form W-5 must be renewed each calendar year. Failure to renew Form W-5 will cause loss of this benefit.
You may elect to revoke Form W-5 at any time.