Earned Income Credit (EIC) Advance Payment Information

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TAXES 13-41, Earned Income Credit (EIC)

Arrow Left(Effective Pay Period 26, 2009)Arrow Right

Use the following steps to calculate the EIC advance payment. Note: Once the employee's year-to-date annual taxable wages paid reach Arrow Left$35,536Arrow Right or more for single, head of household, or widow(er) filers or Arrow Left$40,546Arrow Right or more for married filers, the EIC advance payment is $0.00.

  1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefit Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by 26 to obtain the annual taxable wages.
  5. If the employee (single, head of household, or qualifying widow(er)) is filing for EIC advance payment, apply the annual taxable wages to the following table:

    If the Amount of
    Annual Wages Is:

    The Amount of EIC
    Advance Payment Should Be:

    Over:

    But Not Over:

          Of Excess Over:

    $0

    Arrow Left$8,970.00

    $0

    plus

    20.400%

    $0

    8,970.00

    16,450.00

    1,830.00

         

    16,450.00

    35,536.36

    1,830.00

    less

    9.588%

    16,450.00

    35,536.36Arrow Right

    and over

    0

         
  6. If the married employee (not spouse) is filing for EIC advance payment, apply the annual taxable wages to the following table:
    If the Amount of
    Annual Wages Is:
    The Amount of EIC
    Advance Payment Should Be:
    Over: But Not Over:       Of Excess Over:
    $0 Arrow Left$8,970.00 $0 plus 20.400% $0
    8,970.00 16,450.00 1,830.00      
    21,460.00 40,546.36 1,830.00 less 9.588% 21,460.00
    40,546.36Arrow Right and over 0      
  7. If the married employee and spouse are filing for EIC advance payment, apply the annual taxable wages to the following table:
    If the Amount of
    Annual Wages Is:
    The Amount of EIC
    Advance Payment Should Be:
    Over: But Not Over:       Of Excess Over:
    $0 Arrow Left$4,485.00 $0 plus 20.400% $0
    4,485.00 10,730.00 915.00      
    10,730.00 20,273.18 915.00 less 9.588% 10,730.00
    20,273.18Arrow Right and over 0      
  8. Divide the annual EIC advance payment amount by 26 to obtain the biweekly EIC advance payment amount.