Not for Women Only
Home Sweet Home Economics
Working people are eligible for a tax break called Earned Income Tax Credit—a nursing assistant's story.
Knoxville, Illionois
Every day at work, Penny Carlson feeds geriatric patients and helps them to the bathroom. She brushes the teeth of a 24-year-old, comatose after a car accident. She sponge-bathes a 38-year-old victim of a heart attack. Carlson does this for eight hours a day, 40 hours a week—supporting herself and her three-year-old son, Tyler, on an annual salary of around $17,000.
Carlson is a certified nursing assistant (CNA) at the Knox County Nursing Home. She has been working there for 16 years—a long time given the nursing home's high turnover. "It's rough work," Carlson said. "CNAs are the backbone of the nursing care industry, but we're the most underpaid for what we do."
The Earned Income Tax Credit (EITC) is designed to help low- and moderate-income workers like Carlson. In 1995, this federal tax incentive provided over 19 million workers and their families with a total of over $20 billion. For 1995, Carlson received $1,298 through EITC.
Even with the credit, though, money is tight. Carlson often relies on her parents. During work hours, her mother takes care of Tyler. "If I had to pay a baby-sitter," Carlson said, "I don't know what I'd do." This past fall, when she decided to try to make the worn-out tires of her car last through the spring, her father insisted on lending her money to replace them.
If it weren't for the union, Carlson explained, her situation would be worse. "Compared to other nursing homes in the area, we're top pay. Our benefits far outweigh anyone's."
Carlson became active in AFSCME Local 1047 as a steward on the third shift. She went on to become a member of the executive board and was elected president in 1991. "The union gives us a voice in the workplace. It gives us a real say in patient care."
Tough Choices. When asked what she would do with her EITC payment, Carlson laughed. "I'll use it to catch up." She says she'll pay her winter utility bill, pay back her father for the tires and replace the microwave oven that broke eight months ago.
Now she has to decide which gets done first. On a limited salary, such choices are tough. Without EITC, they might simply cease to exist.
What is the EITC?
Earned Income Tax Credit
It's not too late to get money back for 1995. The EITC is a special tax benefit for low- or moderate-wage earners. If you're eligible, you'll owe less in taxes and you could even get cash back. Even if you don't owe income tax, you can get the EITC. And if you were eligible in 1995, but didn't claim the credit when you filed, an amended return can fix that. In fact, you can file an amended return for taxes filed up to three years ago.
Are You Eligible?
- Did you have one child at home in 1995? Did your family earn less than $24,396?—You could get up to $2,094.
- Were you raising more than one child in your home in 1995? Did your family earn less than $26,673?—You could get up to $3,110.
- If you weren't raising a child, did you earn less than $9,230 in 1995? Were you between the ages of 25 and 64? —You could get up to $314.
How do I get the money in my pocket?
- If you were raising children in 1995, make sure to file federal tax return Forms 1040 or 1040A, not Form 1040EZ. Be sure to attach Schedule EIC.
- If you weren't raising children in 1995, file any federal tax return and write "EIC" (or the dollar amount of the credit) on the Earned Income Credit line.
Did you already file your 1995 taxes?
If you were eligible, but didn't claim the credit, file the amended federal tax return Form 1040X and be sure to attach Schedule EIC.
Help! This tax stuff is confusing!ELP! THIS TAX STUFF IS CONFUSING!
Call the IRS toll-free at (800) 829-1040. The line is often busy, so it will require some patience, but operators are usually friendly and helpful.
