LABOR LAW NEWS

Louisiana 2016 Earned Income Credit Update

Published on February 29, 2016

The Louisiana Workforce Commission raised the income amount for workers eligible to claim the EIC in 2016.

Income eligibility is tiered based on marital filing status and a number of children. For example, married workers filing jointly and claiming three or more children, the income the State bumped the income threshold to $53,505, an increase of $450 over the 2015 level.

2016 Louisiana Federal Earned Income Tax Credit Tiers

For earners filing jointly, the claimable amount of Federal Earned Income Tax Credit depends on the number of children and marital filing status. For 2016, each of the EIC tiers in Louisiana was increased over 2015 levels.

  • 3 or more children: $47,955 ($53,505 married filing jointly)
  • 2 children: $44,648 ($50,198 married filing jointly)
  • 1 child: $39, 296 ($44,846 married filing jointly)
  • No children: $14,880 ($20,430 married filing jointly)

What is an Earned Income Tax Credit?

An earned income tax credit allows low-income families with at least one employed member paying in to the tax system to claim a refundable tax credit on their tax filings that reduces their overall tax burden.

What is Earned Income?

Earned income includes all taxable income and wages, including:

  • Wages, salaries, and tips
  • Union strike benefits
  • Disability benefits received before you reach minimum retirement age
  • Net earnings from self-employment

Mandatory Changes to Louisiana Earned Income Credit Posting

Every employer in Louisiana is required to post the Louisiana Earned Income Credit posting. The 2016 version of the posting includes significant revisions to income eligibility requirements for workers, and employers should remove previous versions and display the latest version.

This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

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