Topic Summary

This topic briefly described the advance earned income credit (AEIC).

Employees who expect to qualify for the earned income credit (EIC) and to have at least one qualifying child for the next tax year can choose to receive a portion of the credit in advance throughout the year by submitting a completed Form W-5 to their employer.

Advance earned income credit payments are reported in box 9 of Form W-2. Enter this amount on Form 1040A, line 36, or Form 1040, line 60.

	If Advanced Earned Income Credit is received throughout the year, the taxpayer must file a return. If the taxpayer is not entitled to EIC, the advances received will have to be repaid.