House Bill 632 (Chapter 352, Acts of 2011), the Earned Income Credit Information Act, requires the Comptroller to publish the maximum eligibility for the State earned income tax credit (EITC) on or before January 1 of each calendar year. This Act also requires the Comptroller to notify all employers in Maryland by mail of the information on the State EITC. The employer then must notify each employee who may be eligible for the federal or State earned income tax credits electronically or in written form by December 31. The Act took effect on January 1, 2012. You may view and download the Tax Alert for this new requirement. You may also read the IRS notice.
Certain employees may be entitled to claim an earned income tax credit on their 2015 federal and Maryland income tax returns if both their federal adjusted gross income and their earned income is less than the following:
• $47,955 ($53,505 married filing jointly) with three or more qualifying children
• $44,648 ($50,198 married filing jointly) with two qualifying children
• $39,296 ($44,846 married filing jointly) with one qualifying child
• $14,880 ($20,430 married filing jointly) with no qualifying children
The notice to employees must include the following statements: (1) the employee may be eligible for the federal and State earned income tax credits; and (2) the employee may be eligible for the State earned income tax credit. We have created a sample employee notice for you to use, however, you may create your own as long as it includes the two statements above.