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typing on a computer for EITC notice or IRS notice 797

Which States Require an EITC Notice or IRS Notice 797 for Employees?

Several states require that employers give tax notices to employees regarding their possible eligibility for the Earned Income Tax Credit (EITC, or EIC).

EITC is a benefit for working people who make low to moderate income. The credit reduces these individuals’ tax liabilities. EITC is available as a lump sum when employees file their income tax return each year.

EITC Notice

Employers in certain states must give employees a notice about the EITC. Usually, you need to give the notice to your employees and Form W-2 around the same time. You can find a copy of the notice on Form W-2, but you must also distribute a state required form about the EITC.

Here are the states that require you to give the EITC notice to your employees:

California

Send the EITC notice to workers who receive Form W-2 or Form 1099-MISC. For the specific wording to include in the notice, see the California EITC FAQ page.

Illinois

Give the EITC notice to workers who receive Form W-2 or Form 1099-MISC. You must also provide employees with IRS Notice 797. The IRS Notice 797 is simply used to inform the public about the potential of an income tax return because of the EITC.

Louisiana

Louisiana only requires employers with 20 employees or more to send the EITC notice, and only to new employees whose anticipated wages are $47,000 or less per year. You must display the Louisiana EITC notice poster in your business.

Maryland

You must notify your eligible employees about the EITC by December 31. Find eligible income requirements on the Comptroller of Maryland website.

New Jersey

In New Jersey, you must provide the EITC notice to potentially eligible employees between January 1 and February 15 of each year. See New Jersey’s employer instructions and written notice to employees.

Texas

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

Virginia

In Virginia, you must post the EITC notice poster in your business where employees can read it.

Philadelphia

Employers in the city of Philadelphia, Pennsylvania must give the EITC notice to every employee who is a Philadelphia resident.

More information on EITC notice and IRS notice 797

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

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