California Employee Tax Information Booklet

California Employee Tax Information/EITC Information Booklet 10PK


The California “Earned Income Tax Credit Information Act” requires employers to notify all employees that they may be eligible for the Federal and State EITC and provide eligibility information.

10 Booklets per pack.

SKU: 05704

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Notice of federal and California Earned Income Tax Credit

Section 19853 of the California Revenue and Taxation Code (R&T) provides:
(a) An employer shall notify all employees that they may be eligible for the federal and the California EITC within one week before or after, or at the same time, that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee.
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(c) The employer shall provide the notification required by subdivision (a) by handing directly to the employee or mailing to the employee’s last known address either of the following:
(1) Instructions on how to obtain any notices available from the Internal Revenue Service and the Franchise Tax Board for this purpose, including, but not limited to, the IRS Notice 797 and information on the California EITC at the Web site
(2) Any notice created by the employer, as long as it contains substantially the same language as the notice described in paragraph (1) or in Section 19854.
(d) The employer shall not satisfy the notification required by subdivision (a) by posting a notice on an employee bulletin board or sending it through office mail. However, these methods of notification are encouraged to help inform all employees of the federal and the California EITC.

EITC Notice Contents

California R&T Code section 19854(a) prescribes the text of the  Earned Income Tax Credit notice to be furnished to employees.  The specified text describes the general availability of the Federal and State EITC credit, provides tax filing information, and informs employees that the credit is not used to determine eligibility of other low-income state and federal programs.

IRS Notice 797

In addition to the notice required by R&T section 19854(a), the Code requires informing employees of IRS Notice 797. The Notice  797 is included in the Tax Information Booklet. It describes the Federal Earned Income Credit (EIC a.k.a. EITC) program, how much credit may be available, how to claim the credit, and how to obtain additional information about the credit.

Important Message from the IRS

This publication is included in the Tax Information Booklet. This publication covers EITC income thresholds, qualifying children, and other refundable tax credits.

IRS Qualifying Child Rules & Tie-breaker Rules

The Tax Information Booklet also includes the IRS’ child qualifying rules pertaining to relationship, age, residency and tax filing status. It also provides information about which parent may claim the credit, when a child qualifies for more than one person and the tie-breaker rules.