Karen's Keynotes
by Karen Armstrong, Human Development Extension Agent
Rolette County

Earned Income Credit Is Extra Money

Filing taxes may have a perk: you may qualify for earned income credit. Full-time and part-time workers who qualify for the earned income credit (EIC) and file a tax return can receive some if not all of their federal income tax that was withheld from their salaries during the year.

In the 2000 Tax year, North Dakota had 34,449 families who applied and were eligible to receive earned income credit. After filing their income taxes, families were reimbursed an estimated $51,373,000 by the federal government.

Who qualifies for EIC and how much is it worth? a.. Single or married people who worker full-time or part-time in 2001 may qualify for EIC, depending on their income for that year. b.. Workers who were raising a child in their home and had an income of less than $28,281 in 2001 may receive up to $2,428. c.. Workers who were raising more than one child in their home and had an income of less than $32,121 in 2001 may receive up to $4,008. d.. Workers who were not raising children in their homes, and were between ages of 25 and 64 on Dec. 31, 2001, and had an income of less than $10,710 may receive up to $364.

Workers in North Dakota who are raising children in 2001 must file Form 1040 or 1040A and must fill out and attach Schedule EIC when filing income taxes. Those who are not raising children in 2001 may file any tax form of their choice. Correct names and social security numbers must be provided for every person listed on the tax return and EIC form.

The EIC is a special tax benefit for working people who earn low or moderate incomes. Its purpose is to reduce the tax burden on workers, supplement wages and make working more appealing than welfare.

For more information about EIC contact your county agent or contact Debra Pankow, NDSU Extension Service family economics specialist at (701) 231-8593 or at dpankow@ndsuext.nodak.edu.

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Source: Debra Pankow, (701) 231-8593, dpankow@ndsuext.nodak.edu Editor: Richard Mattern, (701) 231-6136,Richard.Mattern@ndsuext.nodak.edu Writer: JJ Camarillo, (701) 231-8371, Camarillo45@Hotmail.com

So Why Isn't Your Child Buckled Up?

Excuse: "My child is safest in my arms." Fact: Your child will not be protected in your arms or lap. The force of a crash will pull a child from your arms. Your body can crush a child against the dashboard.

Excuse: "Safety belts will trap us if the car catches on fire or falls into water." Fact: Only a very small number of crashes involve fire or falling into water. Even so, safety belts keep passengers unhurt and alert enough to escape.

Excuse: "I can grab my child in a crash." Fact: Probably not. Crashes happen suddenly, allowing less than one-half second to react. Very few adults can react that fast, and wouldn't know what protective measures to take.

Excuse: "We might be saved if we're thrown clear of the car in a crash."Fact: Your chances of being killed are 25 times greater if you are thrown from the car. Think about it: the only two ways out are through an open door or through the glass.

Source: "Family Matters", Colorado State Extension Service

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