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Virginia - EITC & CLI

Virginia - EITC & CLI

Virginia EITC and CLI Notices: Employer Posting Requirements

Virginia employers have workplace posting obligations involving the Earned Income Tax Credit (EITC) and the Virginia Credit for Low-Income Individuals (CLI). These notices help employees understand tax benefits that may be available to eligible workers and families.

Virginia's Department of Labor and Industry identifies both the EITC and CLI notices among the state's required workplace posters. Employers should ensure that applicable notices are displayed with their other required employment postings.

What Is the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit is a federal income tax benefit designed to assist eligible workers and families with earned income.

Eligibility depends on factors such as income, filing status, qualifying children, and other requirements established by the Internal Revenue Service.

The federal EITC may reduce an eligible taxpayer's federal income tax liability and can result in a refund when the taxpayer qualifies.

Income limits and credit amounts may change from year to year. Employees should consult current IRS guidance rather than relying on historical income thresholds.

Virginia Earned Income Tax Credit

Virginia also provides earned income tax credit options for eligible taxpayers who qualify for the federal EITC.

Depending on the applicable tax year and eligibility requirements, taxpayers may qualify for a refundable or nonrefundable Virginia earned income tax credit.

Employees should review the current rules published by Virginia Tax to determine which credit is available and most beneficial for their circumstances.

What Is Virginia's Credit for Low-Income Individuals (CLI)?

The Virginia Credit for Low-Income Individuals is a state income tax credit intended to assist eligible taxpayers whose family Virginia adjusted gross income meets applicable income requirements.

Eligibility generally depends on the taxpayer's family Virginia adjusted gross income, household circumstances, applicable federal poverty guidelines, and other statutory requirements.

The CLI is a nonrefundable credit, meaning it cannot exceed the taxpayer's qualifying Virginia income tax liability.

Virginia taxpayers cannot claim the CLI and a Virginia earned income tax credit for the same tax year. They should review the available options and applicable eligibility rules.

Are Virginia Employers Required to Display EITC and CLI Notices?

Virginia identifies the Earned Income Tax Credit and Credit for Low-Income Individuals notices as required workplace postings.

The EITC notice informs employees that they may qualify for federal or state earned income tax credits. The CLI notice provides information about Virginia's tax credit for qualifying low-income individuals.

Employers should display the applicable notices in the workplace along with other required state and federal employment postings.

For official posting information, visit the Virginia Department of Labor and Industry Required Workplace Posters page.

Why Are These Workplace Notices Important?

Tax credit notices help employees become aware of benefits they might otherwise overlook.

Displaying the required notices also helps employers meet workplace posting obligations and provides employees with information about where to obtain additional tax credit guidance.

Employers are not responsible for determining every employee's individual tax credit eligibility. Employees should consult the IRS, Virginia Tax, or a qualified tax professional for assistance with their personal tax circumstances.

Where Should Virginia EITC and CLI Notices Be Posted?

Virginia employers should display applicable tax credit notices in the locations designated for required employee notices.

These locations should allow employees to readily access workplace posting information. Employers should review the applicable posting instructions and ensure that required notices remain legible and available.

Do Virginia EITC and CLI Notices Need to Be Updated?

Employers should periodically review official workplace notices for revisions to tax credit information, agency instructions, or other required content.

Because income thresholds and tax credit rules can change, employers should avoid relying on outdated notice versions when updated official materials are available.

Virginia Labor Law Posters and Compliance Resources

Virginia employers may also need additional workplace notices covering minimum wage, workplace safety, unemployment insurance, workers' compensation, employee rights, and other applicable requirements.

Visit our Virginia Labor Law Posters page for state-specific compliance information and available workplace posting products.

Employers can also browse State and Federal Combination Labor Law Posters or learn about our Poster Replacement Plan for managing applicable workplace posting updates.

Frequently Asked Questions

What does EITC stand for?

EITC stands for Earned Income Tax Credit, a tax benefit available to eligible workers and families.

What does CLI stand for in Virginia?

CLI stands for Credit for Low-Income Individuals, a Virginia income tax credit for qualifying taxpayers.

Can employees claim both Virginia EITC and CLI?

No. Virginia taxpayers generally must choose the applicable credit for which they qualify rather than claiming both for the same tax year.

Are EITC and CLI notices included in every labor law poster?

Employers should verify the contents of their particular poster package. Required notices may vary by jurisdiction, product configuration, and revision date.

Official Virginia Tax Credit Information

For current eligibility requirements, visit Virginia Tax: Earned Income Tax Credit and Credit for Low-Income Individuals.

Compliance note: This article provides general information about Virginia workplace notices and tax credits. Employers should consult current official agency guidance to determine their posting obligations.

Oct 4th 2019 Donald Butts - Compliance Specialist

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