Earned Income Tax Credit Eligibility


Employers are reminded to provide employees with notification of their eligibility to receive the Earned Income Tax Credit, a notice that must be sent annually with all W-2 Forms.

The notification must inform employees that they may be eligible to receive the credit, which can reduce the amount of taxes owed for low to moderate income individuals and families.

The IRS explains the credit as follows:

The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund.

The site goes on to outline when to expect the refund, who qualifies, and how to make a claim.

The notice can be distributed both electronically or hand delivered to employees.

For more details, please click here.

piggy bank with change

Learn More About Our HR Related Services