Info for Employers
The new Earned Income Tax Credit (EITC) Information Act is now in effect. Employers are now required to:
- Annually notify their employees that they could be eligible for the EITC;
- Notify all employees or, if they choose, just the employees who may qualify for the federal and state EITC;
- Provide individual notification through email or a flyer;
- A poster in the break room is NOT compliant with the law– you’ll have to reach out to employees individually through email or a mailed flyer.
If you’re an employer and you’re looking for information on how to comply with this new law, you’re in the right place.
2015 Tax Year Income Limits and Maximum Amounts
Click here to use the EITC Assistant at the Internal Revenue Service’s website to find out if you are eligible. For the 2016 tax season (tax year 2015), the eligibility levels are:
- Earned Income and adjusted gross income (AGI) must each be less than:
- $4,747 ($53,267 married filing jointly) with three or more qualifying children
- $44,454 ($49,974 married filing jointly) with two qualifying children
- $39,131 ($44,651 married filing jointly) with one qualifying child
- $14,820 ($20,330 married filing jointly) with no qualifying children
Tax Year 2015 maximum credit:
- $6,242 with three or more qualifying children
- $5,548 with two qualifying children
- $3,359 with one qualifying child
- $503 with no qualifying children
The Internal Revenue Service (IRS) has useful marketing tools, including templates, statistics, fact sheets, how-to tips, and links to other helpful resources here: www.eitc.irs.gov/ptoolkit/main.
Free Tax Preparation for Your Employees
If any of your employees make less than $53,000 per household, they’re also eligible for free tax preparation services through the Volunteer Income Tax Assistance (VITA) Program. Click here for a list of our partner sites who provide free tax preparation.
- We encourage you to tell your employees about our free tax preparation services! Click here for a flyer that you can use.
- Need a flyer you can use to send to your employees who may have also received unemployment? Click here
- Are you an employer who is concerned that you may have employees incorrectly classified as independent contractors? Learn more about the Internal Revenue Service’s voluntary reclassification program here.