Earn Tax Credits by Saving for Retirement
Did you know that the government incentivizes taxpayers for certain things? It's true. Take, for example, the Retirement Savings Contribution Credit, commonly referred to as the Saver's Credit. This is a tax credit for taxpayers who invest in their future by saving for retirement. It helps reduce your taxes while at the same time helping you and incentivizing you to save for retirement. How much is the credit? The credit is up to $1000 (up to $2000, if Married Filing Jointly). While this may not seem like very much, every little bit helps, especially when reducing tax liability. How does it work? Based on your Adjusted Gross Income (AGI) and your filing status for taxes, you can receive a credit of 10%, 20%, or 50% of eligible contributions to a 401(k) or to an individual retirement account (IRA). This is a non-refundable credit that will help reduce the amount of taxes due but cannot be more than the amount of taxes owed. Who qualifies for the credit? Individu...