| If you are a middle to low income earner, you can | | | | $25,875 annually, you will qualify at 20% of what you |
| earn tax credits for depositing money into an IRA or | | | | have deposited. If you file as head of household and |
| 401K plan. The Retirement Savings Contribution | | | | earn more than $25,875, but less than $39,750, your |
| Credit will give you a tax credit of up to 50% of the | | | | tax credit will be 10% of what you deposited. |
| money you deposit, depending on your income. | | | | There is a maximum credit of $1000, so if you were |
| If you are married and filing jointly with an income | | | | able to make a generous contribution to your |
| under $32,000 annually, you qualify at 50%of your | | | | retirement account, you may not qualify for the full |
| annual investment. If you are married and filing jointly | | | | deduction. |
| with annual income above $32,000, but below | | | | Contributing to a pre-tax retirement fund is a great |
| $34,500, you qualify at 20% of your deposits. If you | | | | way to save money on taxes now, whether you |
| are married and filing jointly with an income below | | | | qualify for the Retirement Savings Contribution Credit |
| $53,000, but above $34,500, you qualify at 10% of | | | | or not, because none of the money is taxable going |
| your investments. | | | | in. |
| If you are single and earn under $16,000 annually, you | | | | It is recommended that you consider consulting with |
| qualify at 50% of your deposited amount. If you are | | | | a tax professional and have them file your return. |
| single and earn less than $17,250 annually, but more | | | | Filing an income tax return can ordinarily be a bit |
| than $16,000, you qualify at 20% of your invested | | | | confusing, but due to all the tax restrictions and |
| dollars. If you are single and make more than $17,250 | | | | qualifications associated with retirement savings, your |
| annually, but less than $26,500, you qualify for a 10% | | | | next filing could prove more difficult than it usually is |
| tax credit. | | | | if you have invested in retirement savings. Tax |
| If you are the head of household and earn less than | | | | professionals are trained on all the changes to the |
| $24,000 annually, you qualify at 50% of your | | | | code and will know which ones will benefit you and |
| invested money. If you are head of household and | | | | exactly how you do or do not qualify to take |
| earn more than $24,000 each year, but less than | | | | advantage of them. |