Glossary of Human Resources Management and Employee Benefit Terms
An Advanced Earned Income Credit is the early bestowal of the Earned Income Tax Credit (EIC) through the completion of Form W-5.
Eligible employees can receive the earned income tax credit (EIC) when they file their tax return. Or, by completing Form W-5, Earned Income Credit Advance Payment Certificate, they can get a portion of the credit in advance with their pay. Form W-5 expires on December 31 of each year. A new form must be filed each year in order to continue receiving advance EIC in the next year.