Texas employers must notify their employees of the federal Earned Income Tax Credit (EITC) no later than March 1st of each year.
For purposes of the EITC notification requirement, an employer is any person or business that employs one or more employees, and an employee is an individual employed by an employer for compensation.
The EITC is a refundable federal income tax credit for low to moderate income workers and families. If EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To get the credit, workers must meet certain requirements and file a tax return, even if they don't owe any tax or are not required to file.
An employer may provide notice to its employees in any of the following ways:
- In person
- Electronically at the employee’s last known email address
- Through a flyer included with a pay stub (wage statement), in paper or electronic form
- By first-class U.S. mail to the employee’s last known address
Employers may use IRS Notice 797
or a written statement with the same wording as IRS Notice 797 when notifying employees. IRS Notice 797 provides employees with the basic information for EITC.
For more information from the Internal Revenue Service, including additional materials in multiple languages for informing employees, see EITC Information for Employers.
