Today, we are going to talk about a little secret deduction that most people aren’t aware of. It’s called the “Savers Credit”. Those of you who may be familiar with this credit might know it by its former name, “Retirement Savings Contribution Credit”. This credit rewards you for saving for your future by providing you with a nice little tax credit. Let’s talk details.
Well, for starters, who qualifies for the Savers Credit? If you are over the age of eighteen, not a full time student, and not listed as someone else’s dependent, you make the cut. The maximum credit you can claim if you’re single is $2,000. That amount doubles to $4,000 if you’re married. The amount that you are claiming as a deduction must be related to contributions to a qualified plan (Traditional or Roth IRA, 401(k), Simple IRA, etc.) made during the year of the tax return you are filing.
Just how much of your contributions can you deduct? Check out the table below to see.
Our clients have enjoyed larger tax refunds from this credit for many years and you can too! As always, if you have any questions regarding your eligibility or qualifying deduction amount, Wealth Builders CPAs & Consultants can help! Our experienced team can help you to not only maximize your deductions, but also to plan for your future. Call us today to get started!
“Retirement Savings Contribution Credit (Savers Credit).” IRS, 26 Aug. 2017, www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit. Accessed 5 Sept. 2017.
“What is the Savers Credit?” Intuit Turbo Tax, 2016, turbotax.intuit.com/tax-tools/tax-tips/Taxes-101/What-Is-The-Savers-Credit-/INF15617.html. Accessed 5 Sept. 2017