Business and Finance.

Advance Earned Income Tax Credit Changes for 2011

Beginning Jan. 1, 2011, employees can no longer receive the advance earned income tax credit (AEITC) on their paychecks. Because of this change, the W-5 form should no longer be used.

The AEITC was repealed as part of H.R. 1586.  Employees may still claim the earned income tax credit (EITC) on their tax returns. According to the Internal Revenue Service, the earned income credit (EITC) is “a tax credit for certain people who work and have low wages.”

Learn more about the EITC online at www.eitc.irs.gov.

If you have any questions about this change, contact Robin Oglesby-Harris at 480.965.2802