10. Required Notice to Employees About the Earned Income Credit (EIC)

Official source

You must notify employees, except for employees in American Samoa, Guam, Puerto Rico, the CNMI, and the USVI, who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. Although you don’t have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you’re encouraged to notify any employees whose wages for 2025 were less than $61,555 ($68,675 if married filing jointly) that they may be eligible to claim the credit for 2025. This is because eligible employees may get a refund of the amount of the EIC that is more than the tax they owe.

You’ll meet this notification requirement if you issue the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. You’ll also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording.

If a substitute for Form W-2 is given to the employee on time but doesn’t have the required statement, you must notify the employee within 1 week of the date the substitute for Form W-2 is given. If Form W-2 is required but isn’t given on time, you must give the employee Notice 797 or your written statement by the date Form W-2 is required to be given. If Form W-2 isn’t required, you must notify the employee by February 9, 2026.

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10. Required Notice to Employees About the Earned Income Credit (EIC)

Official source

You must notify employees, except for employees in American Samoa, Guam, Puerto Rico, the CNMI, and the USVI, who have no federal income tax withheld that they may be able to claim a tax refund because of the EIC. Although you don’t have to notify employees who claim exemption from withholding on Form W-4 about the EIC, you’re encouraged to notify any employees whose wages for 2025 were less than $61,555 ($68,675 if married filing jointly) that they may be eligible to claim the credit for 2025. This is because eligible employees may get a refund of the amount of the EIC that is more than the tax they owe.

You’ll meet this notification requirement if you issue the employee Form W-2 with the EIC notice on the back of Copy B, or a substitute Form W-2 with the same statement. You’ll also meet the requirement by providing Notice 797, Possible Federal Tax Refund Due to the Earned Income Credit (EIC), or your own statement that contains the same wording.

If a substitute for Form W-2 is given to the employee on time but doesn’t have the required statement, you must notify the employee within 1 week of the date the substitute for Form W-2 is given. If Form W-2 is required but isn’t given on time, you must give the employee Notice 797 or your written statement by the date Form W-2 is required to be given. If Form W-2 isn’t required, you must notify the employee by February 9, 2026.