Certain workers can take the earned income credit (EIC) on their federal income tax return. This credit reduces their tax or allows them to receive a payment from the IRS if they do not owe tax. You must give your household employee a notice about the EIC if you agree to withhold federal income tax from the employee's wages and the income tax withholding tables show that no tax should be withheld. Even if not required, you are encouraged to give the employee a notice about the EIC if his or her 2016 wages are less than $47,955 ($53,505 if married filing jointly).
The employee's copy (Copy B) of the IRS 2016 Form W-2, Wage and Tax Statement has a statement about the EIC on the back. If you give your employee that copy by January 31, 2017 (as discussed under Form W-2), you do not have to give the employee any other notice about the EIC.
