Under a recent law signed by Acting Governor Codey, effective immediately, employers must notify in writing employees whom the employer knows, or reasonably knows, or reasonably believes, may be eligible for the Earned Income Tax Credit (EITC). Such notification must take place no later than February 15th of each year and may coincide with issuing the W-2 Wage Statement. The EITC is a refundable Federal tax credit for eligible individuals and families who work and have earned income under the levels indicated below for tax year 2005. Please note, benefit levels change annually and for current rates and/or more information on the EITC you can click here.
- You have more than one qualifying child and you earned less than $35,263 ($37,236 if married filing jointly),
- You have one qualifying child and you earned less than $31,030 ($33,030 if married filing jointly), or
- You do not have a qualifying child and you earned less than $11,750 ($13,750 if married filing jointly).
Click here for a link to the required notice: http://www.state.nj.us/treasury/taxation/pdf/eitcstatement.pdf