Earned Income Tax Credits (EITC)—federal and state

The Earned Income Tax Credit (EITC) helps low to moderate-income workers and families get a tax break. Claiming the credit can reduce the tax owed and may also result in a larger refund. EITCs can be federal, or state:

Federal EITCs
- Gusto provides notice of federal EITCs on copy B of the annual Form W-2. Employers are still responsible for delivering any state-required notifications (outside of Gusto).
State EITCs
- Several states require that employers give their employees notices about EITCs.
  - If a state has a requirement, you can learn about the requirements below.
- Employers are responsible for delivering any required state notifications (outside of Gusto).

Employees can use this EITC assistant to check their eligibility, or learn more about qualifications on our blog.

Use the dropdown below to find:

Which states have requirements
How often you must notify your team
Ways you can notify
Additional details and resources related to the requirement.

Use CMD + F (or CTRL + F) to search for words in the article.

States and local governments with Earned Income Tax Credit (EITC)

To see which states offer Earned Income Tax Credits, check the IRS’s state-by-state resources.

To find out which states require employers to notify employees about Earned Income Tax Credits, use the table below for details.

This table was last updated Mar 17, 2025.

State and resource	How often you must notify	Ways (methods) you can notify	Additional detail about the requirement
California	Notify employees within one week before, after, or during the time they receive their annual wage summary. This includes but is not limited to, Forms W-2 or 1099.	Notifcations can be Handed out directly, or; Mailed to the last known address, or; Emailed (if the employee opts in to electronic statements). Posting on a bulletin board does not count. Read Assembly Bill 1355 for more info.	Must contain substantially the same language as the notice below: “Based on your annual earnings, you may be eligible to receive the earned income tax credit from the federal government. The earned income tax credit is a refundable federal income tax credit for low-income working individuals and families. The earned income tax credit has no effect on certain welfare benefits. In most cases, earned income tax credit payments will not be used to determine eligibility for Medicaid, supplemental security income, food stamps, low-income housing, or most temporary assistance for needy families’ payments. Even if you do not owe federal taxes, you must file a tax return to receive the earned income tax credit. Be sure to fill out the earned income tax credit form in the federal income tax return booklet. For information regarding your eligibility to receive the earned income tax credit, including information on how to obtain the IRS Notice 797, or any other necessary forms and instructions, visit the IRS (irs.gov) or contact the IRS at 1-800-829-3676.”
Colorado	Notify employees once a year.	Can be sent in writing, by email, or by text. Must be in English and any other language used at work. Must include federal and state Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) details (and any additional content required by the Department of Revenue.	n/a
Illinois	Notify employees one week before, one week after, or at the same time they receive their W-2.	You have two notification options: Hand out, or mail your employees IRS Notice 797 (Notice of a Possible Federal Tax Refund Due to the Earned Income Credit, EIC). Create your own notice with the same information from the IRS notice—hand out, or mail the notice.	Your notice should say: "If you earned less than $___ last year and have at least one child, you might qualify for a tax credit from the federal government. This credit could give you a refund of up to $___. Even if you do not owe federal taxes, you must file a tax return to get the Earned Income Tax Credit (EITC). Be sure to fill out the EITC form in the tax return booklet." Make sure to update the dollar amounts each year to match the latest federal limits for earnings and credits.
Louisiana	Notify employees at time of hire	Employers with 20+ employees must display an annually updated poster. The poster must be easily visible to employees.	For employers with 20+ employees
Maine Under Regulation of Employment	Employers must display an EITC poster year-round	Employers must display an EITC poster year-round where employees can easily see it.	n/a
Maryland	Notify employees annually by December 31.	Employers can notify employees who may be eligible for federal and Maryland EITC (or all employees) electronically or in writing.	2024 notice: Available here.
New Jersey	Notify employees between Jan 1 and Feb 15 each year.	Must be a written notice about potential eligibility for federal and New Jersey EITC.	2024 notice: Available here.
Oregon	Notify employees when they receive their W-2 each year (by Jan 31).	Employers can send notices by: Mail (regular or electronic) Hand-delivery Any electronic method used for Form W-2 delivery.	Notice must include websites for EITC information from the Oregon Department of Revenue and IRS: ORS 652.755 OAR 839-020-0087 Sample text, and word template for employers: Available here.
Philadelphia, Pennsylvania	Employers must notify employees annually, typically with their W-2 (by Jan 31).	Employers can download and distribute the required flyer to meet this requirement.	Notification must include information on: Federal EITC Federal Child Tax Credit (CTC) Philadelphia Wage Tax Refund Program
Texas	Notify employees by Mar 1 each year.	Notification can be delivered: In person By email to the employee’s last known email address By mail to the employee’s last known address With a pay stub or wage statement (paper or electronic)	Employers can use IRS Notice 797 or a statement with the same wording.
Virginia	Employers must display an EITC poster year-round.	Employers must display an EITC poster year-round in the same area as other required employee notices.	Poster: Available here.