Uncle Sam Giving Taxpayers a Tax Credit, 2008
Low to moderate income taxpayers can earn a special tax credit in 2008, and the coming years, for saving money! The saver's credit helps offset part of the first $2,000 workers voluntarily contribute to Individual Retirement Arrangements (IRAs) and to 401(k) plans and similar workplace retirement programs.
Also known as the retirement savings contributions credit, the saver's credit is available in addition to any other tax savings that apply.
As specified in the News Wire Announcement from the IRS, dated December 1, 2008: Eligible workers still have time to make qualifying retirement contributions and get the saver's credit on their 2008 tax return.
People have until April 15, 2009, to set up a new IRA or add money to an existing IRA and still get credit for 2008.
However, elective deferrals must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees.
The saver's credit can be claimed by: Married couples filing jointly with incomes up to $53,000 in 2008 or $55,500 in 2009; Heads of Household with incomes up to $39,750 in 2008 or $41,625 in 2009; and Married individuals filing separately and singles with incomes up to $26,500 in 2008 or $27,750 in 2009.
The bottom line is, the saver's credit can increase your tax refund or reduce the amount of taxes you may owe.
A taxpayer's credit amount is based on his/her filing status, adjusted gross income, tax liability and the amount contributed to qualifying retirement programs Form 8880 will be sued to claim the saver's credit.
The Form has the instructions on how to figure the tax saving credit correctly.
A taxpayer's credit amount is based on his or her filing status, adjusted gross income, tax liability and amount contributed to qualifying retirement programs.
Form 8880 is used to claim the saver's credit, and its instructions have details on figuring the credit correctly.
If you are under 18 years of age, or can be claimed as a dependent on someone else's return, or a student (some restrictions) can not take the credit.
Contact your Tax Professional to find out the details.
This article based on IR-2008-134, Dec.
1, 2008 News Wire Announcement
Also known as the retirement savings contributions credit, the saver's credit is available in addition to any other tax savings that apply.
As specified in the News Wire Announcement from the IRS, dated December 1, 2008: Eligible workers still have time to make qualifying retirement contributions and get the saver's credit on their 2008 tax return.
People have until April 15, 2009, to set up a new IRA or add money to an existing IRA and still get credit for 2008.
However, elective deferrals must be made by the end of the year to a 401(k) plan or similar workplace program, such as a 403(b) plan for employees of public schools and certain tax-exempt organizations, a governmental 457 plan for state or local government employees, and the Thrift Savings Plan for federal employees.
The saver's credit can be claimed by: Married couples filing jointly with incomes up to $53,000 in 2008 or $55,500 in 2009; Heads of Household with incomes up to $39,750 in 2008 or $41,625 in 2009; and Married individuals filing separately and singles with incomes up to $26,500 in 2008 or $27,750 in 2009.
The bottom line is, the saver's credit can increase your tax refund or reduce the amount of taxes you may owe.
A taxpayer's credit amount is based on his/her filing status, adjusted gross income, tax liability and the amount contributed to qualifying retirement programs Form 8880 will be sued to claim the saver's credit.
The Form has the instructions on how to figure the tax saving credit correctly.
A taxpayer's credit amount is based on his or her filing status, adjusted gross income, tax liability and amount contributed to qualifying retirement programs.
Form 8880 is used to claim the saver's credit, and its instructions have details on figuring the credit correctly.
If you are under 18 years of age, or can be claimed as a dependent on someone else's return, or a student (some restrictions) can not take the credit.
Contact your Tax Professional to find out the details.
This article based on IR-2008-134, Dec.
1, 2008 News Wire Announcement
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