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Date: December 1, 2010

Bulletin Number: 1040

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Subject

Elimination of the Advanced Earned Income Tax Credit (AEITC)

Purpose

To inform agencies of the elimination of Advanced Earned Income Credit Payments.

Background

The elimination of the Advanced Earned Income Tax Credit (AEITC) is part of the Education, Jobs and Medicaid Assistance Act signed into law by the President of the United States in August 2010.  The AEITC program will be terminated effective December 31, 2010. Qualified employees will, however, still be able to take the credit when they file their federal income tax return.

Affected Employees

All employees appearing on the Tax 113 Control-D report.


Effective Date(s)

Administration paychecks dated January 5, 2011.
Institution paychecks date January 13, 2011.

OSC Actions

OSC has created Control-D report Tax113 (Reset W-5 EIC Employees) identifying employees that are currently participating in the AEITC program.  

OSC will insert a row on the employee Federal Tax Data page and change the Earned Income Credit field by checking the “Not applicable" radio button for all employees appearing on this report.

Agency Actions

Access the Control-D report TAX113 for their agency and inform employees listed on the report of the elimination of this program.

Questions

Questions regarding this bulletin may be emailed to the Tax and Compliance mailbox.