skip navigation

Search Help
Navigation Help


Main Topics
A B C D E F G H I
J K L M N O P Q R
S T U V W X Y Z #


FAQs
Forms
Publications
Tax Topics


Comments
About Tax Map
IRS Tax Map 2008
Current IRS Tax Map

taxmap/pubs/p225-060.htm#en_us_publink1000218830

Advance Payment of Earned Income Credit(p79)


rule
spacer

previous topic occurrence Advance Earned Income Credit (EIC) Payment next topic occurrence

An employee who is eligible for the earned income credit (EIC) and who has a qualifying child is entitled to receive EIC payments with his or her pay during the year. To get these payments, the employee must give you a properly completed Form W-5. You are usually required to make advance EIC payments to employees who give you a properly completed Form W-5, but you do not have to make these payments to farmworkers paid on a daily basis.
The EIC payment is added to the employee's pay each payday. It is figured from tables in Publication 51 (Circular A). You reduce your liability for federal income tax withholding, social security tax, and Medicare tax by the total advance EIC payments made. For more information, see Publication 51 (Circular A).
taxmap/pubs/p225-060.htm#en_us_publink1000218831

Notification.(p79)


rule
spacer

You must provide notification about the EIC to each employee who worked for you at any time during the year and from whom you did not withhold any federal income tax. However, you do not have to notify employees who claim exemption from federal income tax withholding on Form W-4.
You meet the notification requirement by giving each employee any of the following.
For more information about notification requirements and claiming the EIC, see  
Notice 1015, Have You Told Your Employees About the Earned Income Credit (EIC)?