Right in the midst of the 2016 tax season, Louisiana has updated its Earned Income Credit (EIC) notice for 2017. This mandatory posting, which is updated yearly by the Louisiana Workforce Commission, informs employees of the maximum income levels which will allow them to qualify for the federal Earned Income Tax Credit (EITC).
The EITC is a refundable tax credit that primarily benefits low- and middle-income working families, although single parents and some low-income individuals without children may also qualify. It is designed to incentivize work by increasing with income level, and to gradually phase out as income increases rather than cut off abruptly to reduce economic shock. According to a 2013 report by the Louisiana Budget Project, almost 30 percent of Louisiana households claim the EITC yearly, with that number rising to nearly 50 percent in some high-poverty parishes. Louisiana is also one of 26 states that offer a supplemental state credit.
To qualify for the 2017 EITC, earned income (such as wages, tips, commissions, and other taxable pay) and adjusted gross income must both be less than:
| Earned Income |
No Children | 1 Qualifying Child | 2 Qualifying Children | 3 or More Qualifying Children |
| Single | $15,010 | $39,617 | $45,007 | $48,340 |
| Married | $20,600 | $45,207 | $53,930 | $53,930 |
Although these tax credits can have a huge impact on the finances of working families, sometimes raising them above the poverty level, research by the Internal Revenue Service and the Government Accountability Office indicates that between 15 and 25 percent of households entitled to the EITC do not claim their credits. As such, since 2005 Louisiana law has required employers with 20 or more workers (both full-time and part-time) to inform employees below a specified income level of their potential EITC eligibility at the time of hire.
In 2017, you must inform new hires of the potential availability of Earned Income Tax Credits if they make $48,000 or less annually. Business establishments employing twenty or more workers are also required to conspicuously post this notice in or about the premises where any worker is employed.
If you already own one of Compliance Poster Company’s signature products, you can update your EIC posting with this cost-effective 2017 Louisiana Earned Income Credit Peel ‘N Post™ sticker in English or Spanish. Or, if you’re looking for a complete compliance solution, order an up-to-date Louisiana All-On-One™ Poster, consolidating all state and federal required postings onto one convenient and attractive wall poster, or a Mobile Poster Pak™ booklet for mobile and off-site workers. And don’t forget to follow us on Facebook and Twitter, or subscribe directly to this blog, to keep up with compliance and labor law news!