We're reaching out to share some exciting news about an important tax benefit your employee might be eligible for— the Federal Earned Income Tax Credit (EITC). We thought you would want to know this benefit is designed for certain working individuals and families.
Note: Under federal law, employers must notify an employee of the EITC if the employee worked for them at any time during the year and they didn’t withhold income tax from the employee’s wages. However, this requirement doesn’t apply if the employee claimed exemption from withholding on Form W-4, Employee’s Withholding Certificate.
If your employee makes $60,000* or less, you should have notified them at the time of hiring of the potential availability of Earned Income Tax Credits. EITCs are reductions in federal income tax liability for which they may be eligible if they meet certain requirements. Additional information and forms for these programs can be obtained from the Internal Revenue Service.
To receive the federal EITC, they must file a federal tax return and fill out the EITC form, which can be found in the Federal Income Tax Return Booklet. For additional information on their eligibility to receive the federal EITC and other federal antipoverty tax credits, contact the IRS at 1-800-829-1040 or visit the IRS Website at www.irs.gov. Visit this state EITC information for additional information.