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Save up to $1000 on Your Tax Bill with Savers Credit for Lower Income Households

submitted on January 26, 2011 by pablos17 in "Member's Lounge"
You might think that the biggest gift from the government when it comes to taxes is the mortgage interest deduction, but there is something better. The Retirement Savings Contribution Credit -- or Savers Credit -- is often overlooked, but it reduces the tax bill by up to $1,000 for millions of American taxpayers.

It's quite simple. To get the full credit, invest at least $2,000 across your retirement accounts including your 401(k), Traditional IRA, and Roth IRA. Even if you don't or can't contribute that much to your retirement fund, you can still qualify for a credit of less than $1,000. You have until April 18 or your extended deadline to contribute to your Traditional or Roth IRA, so there is still time left right now to qualify for this tax credit.

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  • 99752
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    Posted by CouponNut on January 26, 2011
    [reply] 3 0
    We save $$ in health savings account for tax deduction.
  • 99832
    Posted by YanBz on January 27, 2011
    [reply] 3 0
    Adding this to favorite. I will need to make sure we get this credit. I did a Traditional to Roth IRA conversion this year. I wonder if that counts as income and pushes us over the limit of $55,500 required for this credit

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