OLR Bill Analysis
HB 5177 (File 57, as amended by Senate “A”)*
AN ACT CONCERNING EMPLOYERS AND NOTICE OF AVAILABLE FEDERAL EARNED INCOME TAX CREDITS.
This bill requires all employers to post in a conspicuous place or annually distribute with employee W-2 forms a notice of the availability of the federal earned income tax credit (EITC). The notice must be in a form and manner the state labor commissioner determines. It applies to any person engaged in business who has employees, including the state, municipalities, and other political subdivisions.
*Senate Amendment “A” adds the provision that permits employers to annually distribute the notice with employee W-2 forms.
EFFECTIVE DATE: January 1, 2010
BACKGROUND
EITC Requirements
The EITC is available to a person who earns wages and whose federal adjusted gross income (AGI) falls below certain limits. For 2008, a person qualifies for a EITC if he or she has at least $ 1 of earned income, investment income of $ 2,950 or less, and a maximum AGI and maximum earned income of:
1. $ 12,880 ($ 15,880 for married filing jointly) with no children,
2. $ 33,995 ($ 36,995 for married filing jointly) with one child, and
3. $ 38,646 ($ 41,646 for married filing jointly) with two or more children.
Income limits and credit amounts are adjusted annually for inflation (26 USC § 32).
ETIC Credits
The maximum credits for 2008 are (1) $ 438 with no children, (2) $ 2,917 with one child, and (3) $ 4,824 with two or more children.
COMMITTEE ACTION
Labor and Public Employees Committee
Joint Favorable
Yea |
8 |
Nay |
3 |
(02/26/2009) |