The federal Education Jobs and Medicaid Assistance Act was signed by President Obama on August 10, 2010. One of the provisions of this Act eliminated the advance payment of the federal earned income credit (EIC). This provision is effective for taxable years beginning on or after January 1, 2011.

Wisconsin law provides for an advance payment of the Wisconsin EIC. The Wisconsin advance payment is available only to those persons who claim the federal advance EIC, and is based on a percentage of the federal advance EIC. Because the federal advance EIC was eliminated, the Wisconsin advance EIC will not be available for taxable years beginning on or after January 1, 2011.

August 19, 2010