Did you know that you may be eligible for up to an extra $2,000 in tax credits simply for saving? That’s right! The Savers Credit, also known as the Retirement Savings Credit, applies to certain individuals who contribute to qualified retirement accounts such as a IRAs and 401(k).
To qualify, you must have been born before January 2, 1992, you cannot be a full-time student, and you cannot be claimed as a dependent on another person’s return. Lastly, your income must fall within the following thresholds which vary with filing statuses:
- Single, Married Filing Separately, or Qualifying Widow(er) – income cannot exceed $27,750
- Head of Household – income cannot exceed $41,625
- Married Filing Jointly – income cannot exceed $55,500
Simply Taxes, LLC is a local year-round tax preparation firm with an office located in North Raleigh. Our Raleigh accountants are ready to assist you with your questions pertaining to this tax topic and others.
The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.
Source: IRS Website:IRS Tax Tip 2011-36, February 21, 2011