North Dakota State University -- NDSU Agriculture Communication
7 Morrill Hall, Fargo ND, 58105-5655, Tel: 701-231-7881, Fax: 701-231-7044
agcomm@ndsuext.nodak.edu

January 31, 2002

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?

  • Single or married people who worker full-time or part-time in 2001 may qualify for EIC, depending on their income for that year.
  • 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.
  • 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.
  • 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