Advance on E.I.C

[JLG]

Does or has anyone ever signed up to get the Advanced Earned Income Credit?

This is money that I get back in my tax return for having a qualified dependent and filing head of household.

I have recently been trying to catch up after my cat got sick ($350 vet bill) and various other car expenses.

This money is nice to get in one lump sum at tax time but I know that you can get some of it in your paycheck now. How much I don't know. But anything would help me to catch up. I filled out the form at work and I can stop it at any time if I change my mind.

Was wondering if any of you have received this and if it was worth it.

[Aethian]

Go to the IRS website and figure out how many dependents you should have listed to get as close to a zero refund/pay in as possible. Several people out there usually have it wrong just so they can 'get that big check' during tax time. I have zero dependents and have to claim a few, this past tax season I only paid in 2 dollars and change.

[Amina516]

You also have to be below a certain income to even qualify for the credit.

That being said...I had NO idea you could get an advance. Thats kinda odd.

[trailerparkmedic]

A friend of mine did it. He missed the huge tax refund checks he got, but it worked out to almost $200 each payday, which he needed more. He was getting THOUSANDS back on his taxes, since he had 4 kids and barely made over minimum wage.

[JLG]

A friend of mine did it. He missed the huge tax refund checks he got, but it worked out to almost $200 each payday, which he needed more. He was getting THOUSANDS back on his taxes, since he had 4 kids and barely made over minimum wage.

I know that I qualify to get the Advance but I am debating if it is worth it. I love and need that huge check at once. But since I am going to start it with only 4 months left in the year I am hoping I still get something at tax time.

If I think the amount I get on each paycheck is not worth it I will probably stop it since it said that you can stop receiving the payments at anytime.

[JLG]

You also have to be below a certain income to even qualify for the credit.

That being said...I had NO idea you could get an advance. Thats kinda odd.

I never really paid attention to it and for years I have seen a flyer in the breakroom at work about it. I went online and found out more information.

The President wants to stop this program with one of the reasons being that only a small percentage of people that qualify use it. That is probably because most don't know about it.

I am going to try it and see if it is worth it for me. I answered all of the question on the form to see if I qualified and I did so lets see how it goes.

[taxguykarl]

To be eligable for the earned income tax credit:

Your Adjusted Gross Income (AGI) Must Be Less
Than:
• $43,279 ($48,279 for married filing jointly) if you have three or more qualifying children,
• $40,295 ($45,295 for married filing jointly) if you have two qualifying children,
• $35,463 ($40,463 for married filing jointly) if you have one qualifying child, or
• $13,440 ($18,440 for married filing jointly) if you do not have a qualifying child.

I had one client who did have advance EITC and actually ended up owing because she had a temp gig and some unemployment with no withholding at all. Yes, you will not get a big check at tax time--after all you got the credit already.

All I can say is be careful of that and don't forget about unemployment (which is taxable income). If there is any chance that your and your spouse's income will exceed the above figures (remember you can't claim this credit if you file separately), don't do it.

FWIW, here's the form.

And more info from the horse's mouth.

[Sliceanddice]

i remember Clark Howard saying if you routinely got large tax returns to either lower your tax removal amount or seeing if you qualify for AGI and putting the amount added into your paycheck in a interest baring account of some kind because the large return is basically payment on a interest free loan to the government and its much more financially sound to just put money away and pay if you have to pay latter.

but i ocmpletely understand why you are doing that.

[JLG]

Thanks everyone for your help and input.

And thanks Karl for the additional info in pm

I am going to go ahead and do it but I am going to stop it in December. I just need to catch up a little on some stuff. I prefer the big check during tax time because after I pay all of my bills I usually treat myself to something. Last year I finally got my first digital camera.

I will start saving that money too because I don't want to be caught off guard like I was when my cat got sick and stuff went out on my car sooner than I expected.

[taxguykarl]

I prefer the big check during tax time because after I pay all of my bills I usually treat myself to something.

You're not alone--most of my clients prefer a big refund. Yes, there are some who would rather have just enough to pay my fee, but they are few and far between.

[Mytical]

Some people are rather bad at saving money, and it's a way to help save money. Even if it is a tax free loan to the government. That 1-2k a year (without dependents or EIC) can be a great thing. Lets you splurge a little on yourself. However, yes..if you CAN seem to save money, doing so in an interest bearing way is MUCH better.