02-P-040 Earned Income Credit for 2002 (Supersedes 02-P-029)
|DATE:||April 23, 2002|
|SUBJECT:||Earned Income Credit for 2002|
|EFFECTIVE DATE:||Payroll Period Beginning April 14, 2002 and Ending April 27, 2002, Paid May 10, 2002|
|CONTACT:||Roger Basinger||(785) 296-5387||(email@example.com)|
|SUMMARY:||New Earned Income Credit Category and Table Added to SHARP|
In late December 2001, the Internal Revenue Service issued the 2002 Advance Earned Income Credit tables. With the release of the 2002 tables, the IRS established a new table and status for 'Married Without Spouse Filing Certificate'. Because of the late release date, no updates were available to SHARP to reflect this change. The programming changes have now been made to SHARP and the new 'Married Without Spouse Filing Certificate' status is now available on the Federal Tax Data 2 panel (Compensate Employees/Maintain Payroll Data U.S./Use/Employee Tax Data). Qualified employees can now be assigned to the new status for all remaining paychecks in 2002.
Please find attached 2002 Form W-5, Earned Income Advance Payment Certificate, and the tables for computing the advanced earned income credit. Agencies are reminded that in addition to meeting other criteria, advance EIC qualifiers must have at least one qualifying child and expect 2002 earned and adjusted gross income to be less than $29,201.00 for single employees and less than $30,201.00 for married employees (include spouses income if filing jointly). An employee cannot claim the EIC if planning to file either Form 2555 or 2555-EZ (relating to foreign earned income). A nonresident alien may not claim the EIC for 2002 unless married to a U.S. citizen or resident and elects to be taxed as a resident alien for all of 2002.
The Division of Accounts and Reports, Payroll Systems Team is responsible for making this change in the SHARP system. Regent's institutions are responsible for ensuring these changes are made to their individual payroll systems and are effective for all paychecks issued on or after May 10, 2002.
Advanced Earned Income Credit Formulas
W-5 Earned Income Credit Advance Payment Certificate (pdf)