Wisconsin Advance Earned Income Credit (EIC)
A provision in the recently enacted 2009 Wisconsin Act 28 provides for a Wisconsin advance EIC payment.
Wisconsin will now allow a full-year legal resident of Wisconsin to request that his or her employer add to his or her paycheck a Wisconsin advance EIC. The amount of the Wisconsin advance payment is a percentage of the federal advance EIC. The amount is based on the anticipated number of qualifying children of the individual (4% for one child, 14% for two children, and 43% for three or more children).
Individuals who want to claim Wisconsin advance EIC must file Form WT-5 with their employers. Form WT-5, Wisconsin Earned Income Credit Advance Payment Certificate, and instructions are available at http://www.revenue.wi.gov/forms/with/index.html.
An individual claiming the Wisconsin advance EIC is required to file a Wisconsin individual income tax return for the year. Wisconsin individual income tax Forms 1, 1A, and 1NPR will be revised to account for the Wisconsin advance EIC.
An employer, when completing Form WT-6, Withholding Tax Deposit Report and Form WT-7, Employers Annual Reconciliation of Wisconsin Income Tax Withheld from Wages, may deduct the total Wisconsin advance EIC payments from the aggregate amount that the employer was required to withhold from employee wages. The Form WT-7 will be revised to add line(s) to account for the advance EIC. No changes will be made to Form WT-6. The employer enters on Form WT-6 the net amount of tax withheld less the Wisconsin advance EIC paid for the period.
Employers must report the Wisconsin advance EIC payment to an employee on the employee’s Form W-2. Employers should include in box 14 the code “WEIC” followed by the amount of the advance EIC paid to the employee.
This provision is based on the federal advanced EIC. If the federal advance EIC is discontinued, the State of Wisconsin’s program will also be discontinued.
For additional information and/or assistance, read the FAQs at http://www.revenue.wi.gov/faqs/ise/adveic.html.
Last updated August 21, 2009