Earned Income Tax Credits (EICs) are available at the federal level for any employee under a specific wage limit when filing their individual tax returns. However, did you know in addition to the Federal EIC there are seven states and 1 locality that require EIC notification to employees?
Both California and Illinois require notification be given to employees when distributing Form W-2 or within one week prior to or after distribution. Each state provides sample notices on their websites.
Louisiana requires an EIC notification upon employment for employers with 20 or more full-time or part-time employees. Maryland requires their notice be provided to all employees by December 31 of each year, and New Jersey requires them to be distributed only to potentially eligible employees between January 1 and February 1 of each year.
Texas EIC notification is due no later than March 1, and Virginia requires the notice be posted in the same location as other federal and state required notifications are posted.
Finally, Philadelphia requires employers provide the EIC notification to employees at the same time the Form-W2 is distributed.