Saver's Tax Credit
What is a Saver's Tax Credit?
The saver's tax credit, also called the savers , is a tax credit for making contributions to certain retirement accounts.
How Does a Saver's Tax Credit Work?
The savers taxpayers a of up to $1,000 ($2,000 if filing jointly) for contributions to IRAs, 401(k)s and certain other retirement plans. The actual amount of the credit is a percentage of the amount (typically 10% to 50%). Taxpayers with the least get the highest .
In order to qualify for the savers credit, the following must apply:
- The taxpayer is filing as single, married filing separately, or a qualifying widow(er) with below certain income limits (around $30,000, but it changes every ); if the taxpayer is filing as head of household, the income limit is around $44,000; if the taxpayer is married filing jointly, the income limit is around $59,000.
- The taxpayer was born before January 2, 1993, isn't a full-time student, and isn't someone's .