The Retirement Savings Contribution Credit, also known as the Saver’s Credit, gives you a tax credit for up to $1,000 (or $2,000 if filing jointly) for making contributions to an IRA or employer-sponsored retirement plan. This credit can reduce the federal income tax you pay.
You may qualify for the Saver’s Credit if you:
- Are 18 or older
- Are not a full-time student
- Are not claimed as a dependent on someone else’s return
- Have an adjusted gross income in 2013 of not more than $58,000 if you are married and filing jointly, $43,125 if you are head of household, or $28,750 if you’re single, married filing separately or a qualifying widow(er)
- Made contributions to a traditional or Roth IRA, 501(c)(18) plan, or elective deferrals to a 401(k), SIMPLE IRA, 403(b), SEP IRA annuity or governmental 457(b) plan
Use Form 8880 to find out the amount of your retirement savings contributions credit and include that amount on your tax return.
Learn more about the Retirement Saver’s Credit.
Remember, the deadline to file your federal and state taxes is Tuesday, April 15, 2014.