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Here we are again its tax time. And with all
turmoil in our country not to mention in our private lives, Uncle Sam expects us to sit up and take notice of time of year and file our tax returns with IRS. Well I don’t know about you but with all tax law changes and comings and goings it can be down right confusing for average American. I spend half year before January studying and preparing to meet all of my clients needs and goals, and I still can find a surprise or two at my desk each morning. Take for instance new “Savers Tax Credit,” this little gem will only be with us next four years, by time it catches on…it’ll be gone.
Retirement Savings Contribution Credit is a tax credit allowing eligible contributions to an employer sponsored retirement plan or an IRA become tax deductible. A percentage of your qualifying retirement contributions are determined by using federal form 8880.
Qualifying retirement plans are Traditional and or Roth IRA contributions, and salary reduction contributions to most employer sponsored retirement plans (401k). You may include certain voluntary after tax plans as well.
You cannot claim this credit if any of these circumstances apply to you: You were born after January 1,1985 You are claimed as dependents on another persons return You are a full time student
Table of Income and Filing Status Percentage for Retirement Savings Contribution If your filing status isAnd Your AGI isYour Percentage is Married Filing JointlyNot over 30,00030,000------32,50032,500-------49,99950,000 or Above5020100 Head of HouseholdNot over 22,50022,500----24,37524,375----37,50037,501 or Above5020100 Single, Qualifying Widow(er) or Married Filing SeparatelyNot Over 15,00015,000-----16,25016,251----25,00025,001 or Above5020100
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