End-of-Year EITC Notice Requirements for Employers

EITC State Requirements

Quick links:

  +  California
  +  Colorado
  +  Illinois
  +  Louisiana
  +  Maine
  +  Maryland
  +  New Jersey
  +  Oregon
  +  Philadelphia, Pennsylvania
  +  Texas
  +  Virginia

Employers in a number of states and at least one city must notify employees about the federal and/or state Earned Income Tax Credit (EITC) and other applicable tax credits. The EITC is a refundable tax credit for low- to moderate-income workers. These notices are typically required annually and are based on the employee’s work location. The following summarizes these state and local requirements.

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. 

Important Note: Not all linked forms have been updated to the 2025 version yet. Please check your state’s website for the latest updates and ensure employees receive the most current 2025 version of the required form.

 

California

In California, employers must notify all employees that they may be eligible for: 

• Voluntary Income Tax Assistance (VITA) Program;
• CalFile (a free online program for taxpayers to complete and e-file their state personal income tax returns); and
• State and federal antipoverty tax credits, including federal and California EITC.

The first notice is due around the time the employer provides an annual wage summary, within one week before, after, or at the same time.

Employers must provide the first notice by hand delivery or by mailing to the employee’s last known address. Email delivery (PDF, JPEG, or other digital image file) is only permissible if the employee affirmatively opts in, in writing or by electronic acknowledgment.

A second notice must be sent to all employees during March of the same year. This second notice may be sent electronically.

Notice requirements

California notices must substantially state:

Based on your annual earnings, you may be eligible for the following free assistance:

Voluntary Income Tax Assistance (VITA) Program

A free basic federal and state personal income tax return preparation program managed by the IRS and operated by partners and trained volunteers.

Federal Earned Income Tax Credit (federal EITC) – The federal EITC is a refundable credit for low-income working individuals and families. The federal EITC will not impact certain public assistance benefits. In addition, federal EITC payments are typically NOT used to determine eligibility for the following:

(A) Medicaid

(B) Supplemental Security Income

(C) Supplemental Nutrition Assistance Program

(D) Low-income housing

(E) Temporary Assistance for Needy Families payments

To claim the federal EITC, you must file a federal tax return and complete the EITC form in the Federal Income Tax Return Booklet. For eligibility and information on the EITC and other federal antipoverty tax credits, visit irs.gov.

California Tax Credits for Low-Income Individuals and Families

California offers several refundable tax credits to support low-income working individuals and families, and foster youth. These credits are designed not to impact certain public assistance benefits.

California Earned Income Tax Credit (California EITC) and Young Child Tax Credit (YCTC)

These credits are similar to the federal EITC and are available to low-income working individuals and families.

Foster Youth Tax Credit (FYTC)

This refundable credit is for former and current foster youth ages 18 to 25 who were in foster care at age 13 or older.

How to Claim the California EITC

To claim the California EITC, you must file a California Income Tax Return and complete and attach the California EITC form (Form FTB 3514) to your return.

For more details on eligibility requirements, credit availability, or form questions, please visit ftb.ca.gov and use the search term “CalEITC.”

You may qualify for free preparation and filing of both your federal and state tax returns through the Volunteer Income Tax Assistance (VITA) program. To learn more about this free service, including locations and operating hours, visit ftb.ca.gov and search for “VITA.”

Furthermore, you might be eligible to e-file your California return at no cost directly with the Franchise Tax Board using CalFile. For additional details about CalFile, go to ftb.ca.gov and search for “CalFile.”

Timing

First Notice: Must be provided within one week before or after you provide the annual wage summary (Form W-2), which is due January 31.

Second Notice: A second notice must be sent to all employees during the month of March.

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Colorado

Colorado law requires employers to annually provide all employees with written notification of the availability of the federal and state Earned Income Tax Credit (EITC) and the federal and state child tax credits. This notice can be distributed electronically, such as through email or text message.

Timing

You must provide a written notice at least once per year. While a specific calendar date isn’t set by statute, it is standard practice to include this with the Form W-2 (due January 31).

Link to the required notice form: DR 0995

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Illinois

In Illinois, employers are obligated to inform employees annually about their potential eligibility for the federal Earned Income Tax Credit (EITC), unless the employee’s gross wages surpass the maximum qualifying amount for the federal EITC.

This notification must be provided to the employee by giving or mailing one of the following:

• Any notice provided by the Internal Revenue Service (IRS) for this purpose, such as IRS Form 797.
• A notice created by the employer, provided it contains language substantially similar to the IRS notice.

Timing

The notice must be given within one week of the date you provide the employee with their Form W-2 (due January 31).

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Louisiana

In Louisiana, employers with 20 or more employees generally have two main requirements regarding the Earned Income Tax Credit (EITC):

1. Notification: Employers must notify new employees about the EITC at the time of hire.
2. Posting: Employers must post a Louisiana state EITC notice in the workplace.

Timing

New Hires: You must notify new employees at the time of hiring (specifically those earning less than the specified salary threshold, generally around $35,000–$47,000 depending on the year).

Poster: You are also required to post a state-specific EITC notice in the workplace.

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Maine

Maine employers must post and maintain a copy of the state Bureau of Labor’s published EITC notice, included in the Regulation of Employment poster.

Timing:

Poster Requirement: There is no deadline for an individual handout; instead, you must post and keep posted a specific notice in a place accessible to your employees.

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Maryland

Maryland employers must provide written or electronic notice to certain employees about potential eligibility for the federal and Maryland Earned Income Tax Credit (EITC) by December 31st each year. Employers may notify all employees or only those whose income falls below or meets the maximum threshold for EITC eligibility.

Timing

Notices are due on or before December 31 of the tax year.

Download the current year’s notice from the Maryland state comptroller’s website.

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New Jersey

New Jersey law requires employers to provide written notice about potential eligibility for the federal and/or New Jersey Earned Income Tax Credit (EITC) to certain employees each year.

Key Requirements:

• Timeline: Provide the notice between January 1 and February 15.
• Eligible Employees: Employers must notify employees who are 18 or older and whom the employer knows or reasonably believes may qualify for the federal and/or NJ EITC based on the employee’s prior-year wages.
• Find the mandatory notice form on the New Jersey state website.

Timing

You must provide the notice annually between January 1 and February 15.

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Oregon

Oregon law requires all employers to annually inform their employees about the federal and state Earned Income Tax Credit (EITC). You must include this notification with the employee’s W-2 and follow these criteria:

• It must be provided in English and the language the employer typically uses for communication with the employee.
• It must include the website addresses for both the Internal Revenue Service and the Oregon Department of Revenue, where employees can access information about the state and federal EITC.

Timing

The notice must be provided with the employee’s Form W-2 (due January 31).

A sample notice is available on the Oregon state website.

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Philadelphia, Pennsylvania

Philadelphia employers are mandated to annually inform their employees about the following programs:

• The federal Earned Income Tax Credit (EITC)
• The federal Child Tax Credit (CTC)
• The Philadelphia Wage Tax Refund Program

Timing

You must provide the notice at the same time you provide Form W-2 (due January 31).

(Note: There is no comparable statewide requirement for Pennsylvania outside of Philadelphia).

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Texas

Employers in Texas must notify all employees about the federal Earned Income Tax Credit (EITC) by March 1st of each year.

This notice can be provided using IRS Notice 797 or a written statement that contains the same exact wording as the IRS notice.

Employers may use any of the following methods to distribute this required notice:

• In-Person Delivery: Handing the notice directly to the employee.
• Electronic Mail: Sending the notice to the employee’s last known email address.
• Pay Statement Inclusion: Providing the notice, either as a paper flier or electronically, along with a pay stub (wage statement).
• U.S. Mail: Sending the notice via first-class U.S. mail to the employee’s last known physical address.

Timing

You must notify employees no later than March 1 each year.

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Virginia

Virginia mandates that all employers display workplace notices informing employees about the federal Earned Income Tax Credit (EITC) and the state’s Credit for Low-Income Taxpayers. Employers must place these notices in the standard location used for posting other state or federal employee notices.

Timing

Poster Requirement: Similar to Maine, Virginia law requires you to post the required notices in the same location where other employee notices are posted. There is no requirement to hand out individual notices.

Download the mandatory notices on the Virginia state website.

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EITC Summary

Confirm your eligibility for any Earned Income Tax Credit (EITC) notice requirements and take steps to ensure full compliance if applicable. 

For more information, please contact Nextep at 888-811-5150, log in at clients.nextep.com, or email us at hr@nextep.com.