This article is for admins who want to meet federal, state, and local Earned Income Tax Credit (EITC) notification requirements.
The EITC helps low- to moderate-income workers and families pay less in taxes. Claiming the credit may also get workers a larger refund. EITCs can be federal or state:
Federal EITCs: We provide notice of federal EITCs on Copy B of the annual Form W-2. Employers still need to deliver any state-required notifications outside of Gusto.
State EITCs: Several states require employers to notify their employees about EITCs. If your state has a requirement, find the details in the article’s table. Employers need to deliver 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.
Expand the section 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.
To see which states offer EITCs, check the IRS’s state-by-state resources.
Check the table below to see if your state requires you to notify employees about EITCs. If your state is listed, follow the steps to stay compliant or use the agency resource to meet the requirements.
This table was last updated January 14, 2026.
State and resource
How often you must notify
Ways you can notify
Additional details
Notify employees within one week before, after, or when they get their annual wage summary. This includes but is not limited to Forms W-2 or 1099.
You must also send a second notification to all employees in March.
Notifications can be
Handed out directly
Mailed to the last known address
Emailed (if the employee opts in to electronic statements)
Posting on a bulletin board does not count.
Read Assembly Bill 1355 for more info.
Your notice 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.”
Notify employees once a year.
Send notifications in writing, by email, or by text.
Notifications must be in English and any other language used at work.
Notices must include federal and state EITC and Child Tax Credit (CTC) details, as well as any content required by the Department of Revenue.
n/a
Notify employees one week before, one week after, or at the same time they get 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 $63,398 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. 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.”
Note: Verify current thresholds on IRS Notice 797. Update the dollar amounts each year to match the latest federal limits.
Notify employees at the time of hire.
If you have 20+ employees, you must display an annually updated poster.
The poster must be easy for employees to see.
n/a
Display an EITC poster year-round.
Display an EITC poster in a place where employees can easily see it.
n/a
Notify employees annually by December 31.
Notify employees who may be eligible for federal and Maryland EITC (or all employees) electronically or in writing.
2025 notice: Available here
Notify employees between January 1 and February 15 each year.
Send a written notice about potential eligibility for federal and New Jersey EITC.
2025 notice: Available here
Notify employees when they get their W-2 each year (by January 31).
Send notices by:
Mail (regular or electronic)
Hand-delivery
Any electronic method you use for Form W-2 delivery
The notice must include websites for EITC information from the Oregon Department of Revenue and the IRS:
Sample text and word template for employers: Available here
Notify employees annually, typically with their W-2 (by January 31).
Download and distribute the required flyer to meet this requirement.
Notifications must include information on:
Notify employees by March 1 each year.
Deliver notifications:
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)
You can use IRS Notice 797 or a statement with the same wording.
Display an EITC poster year-round.
Display an EITC poster in the same area as other required employee notices.
Poster: Available here