2010 Earned Income Credit Notice

In accordance with the Internal Revenue Service Laws and Regulations, all employees of Seminole State College, whose wages were not subject to income tax withholding in 2009, may be eligible for a refund because of the Earned Income Credit (EIC). The EIC is a refundable tax credit for certain workers whose income falls below a certain level. Because it is a credit, the EIC is subtracted from the amount of tax owed.

There are two ways for workers to receive the Earned Income Credit (EIC):

• In a lump sum when they file their annual tax return
• In their 2010 pay as an Advanced Earned Income Credit (AEIC)

The advance payments may ease the burden of meeting day-to-day expenses. Families will receive part of the credit in their pay during 2010, rather than waiting to claim their credit when they file their annual tax return.

Employees are only eligible to receive AEIC payments in 2010 if they meet all four of these conditions:

1. You (and your spouse, if filling a joint return) have a valid social security number (SSN) issued by the Social Security Administration.
2. You expect to have at least one qualifying child and to be able to claim the credit using that child. If you do not expect to have a qualifying child, you may still be eligible for EIC payments, but you cannot receive advance EIC payments.
   • You have one qualifying child, and your 2010 earned income and modified adjusted gross income will both be less than $35,535 ($40,545 if married and filing jointly for 2010).
   • You have two qualifying children, and your 2010 earned income and modified adjusted gross income will both be less than $40,363 ($45,373 if married and filing jointly).
   • You have three or more qualifying children, and your 2010 earned income and modified adjusted gross income will both be less than $43,352 ($48,362 if married and filing jointly).
3. You expect your 2010 earned income and adjusted gross income (AGI) to both be less than $35,535 ($40,545 if you expect to file a joint return for 2010). You must include your spouse's income if you plan to file a joint return.
4. You expect to be able to claim the EIC for 2010.

You may not take the EIC if:

• Your 2010 investment income is more than $3,100.
• You file either Form 2555 or Form 2555-EZ (relating to foreign-earned income) for 2010.
• You are a nonresident alien for any part of 2010, unless you are married to a U.S. citizen or resident, file a joint return and elect to be taxed as a resident alien for all of 2010.

If you are eligible for the AEIC and would like to receive part of the Earned Income Credit with your monthly pay, please contact Payroll Services in the Finance and Budget Office (room A-100R or A-100P) to complete Form W-5: Earned Income Credit Advance Payment Certificate.