Which States Require an EITC Notice for Employees?

EITCSeveral states require that employers give tax notices to employees regarding their possible eligibility for Earned Income Tax Credit (EITC, or EIC). You may recall that the Advance EITC program, in which low-income employees could receive a tax credit as an advance with each paycheck, was eliminated in 2011. However, EITC is still available as a lump sum when employees file their income tax return each year.  

Here are the states that require employers to give an EITC notice to employees:

California
The EITC notice should be sent to anyone who receives a W-2 or 1099. For the specific wording to include in the notice, see the California EITC FAQ page.

Illinois
The EITC notice should be sent to anyone who receives a W-2 or 1099.  In addition, employers must also provide IRS Notice 797.  

Louisiana
Louisiana only requires that employers with 20 employees or more send the EITC notice, and only to new employees whose anticipated wages are $43,000 or less per year.  

Maryland
The EITC notice must be sent to any employees who may be eligible for EITC.  See the sample EITC notice for Maryland.

New Jersey
In New Jersey, the EITC notice must be provided between January 1 and February 15 of each year.  See New Jersey’s mployer instructions and written notice to employees.  

Texas
Texas employers must provide an EITC notice to employees by March 1 of each year.  See the Texas Comptroller website for more information.

For more information on your responsibilities as an employer, visit the EITC Central website. If your employees have questions,  the EITC Assistant can help them figure out if they qualify for the tax credit.

This article was provided by Patriot Software, Inc., is a developer of online software for U.S. small businesses, including online payroll softwareapplicant tracking softwarehuman resources software, an employee portal, and 1099 software. Patriot Software also offers a payroll tax filing service for payroll customers, and is currently developing bookkeeping software and a website builder. For more information, visit www.PatriotSoftware.com

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