If you put money into a qualified retirement account for last year, you may be eligible to claim the Savers Credit. This non-refundable credit (meaning it can reduce taxes owed, but will not increase a refund). It provides a tax break to people earning low to moderate incomes, who are trying to save for retirement. <br />Personal contributions to 401(k) accounts, 403(b) accounts, 457 plans, and most IRA accounts may all qualify for the Savers Credit. To be eligible, a taxpayer must be 18 years old or more, not be a dependent on anyone else’s taxes, and may not be a full-time student. <br />When taken in conjunction with other retirement savings tax benefits, the Savers Credit can go a long way to easing your tax burden. You may be able to claim a credit for (10, 20, or 50 percent of the first $2,000 contributed to your account). The percentage of that money you can claim is dependent upon two things: your adjusted gross income, and your filing status. The amount of credit you receive is decreased as your income increases. <br />Married couples using the “Married, Filing Jointly” status can claim a credit of up to $2,000, because if they fall into the right category, they may get credit for up to 50 percent of the first $4,000 they invested in a retirement account together.
