{"id":4180,"date":"2022-03-07T00:31:11","date_gmt":"2022-03-07T00:31:11","guid":{"rendered":"https:\/\/moneymakersandsavers.com\/?p=4180"},"modified":"2022-03-08T04:33:26","modified_gmt":"2022-03-08T04:33:26","slug":"how-to-get-the-savers-tax-credit","status":"publish","type":"post","link":"https:\/\/moneymakersandsavers.com\/how-to-get-the-savers-tax-credit\/","title":{"rendered":"How To Get The Saver&#8217;s Tax Credit For Retirement Contributions!"},"content":{"rendered":"\n<p><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_d8e16a-eb, .wp-block-kadence-advancedheading.kt-adv-heading_d8e16a-eb[data-kb-block=\"kb-adv-heading_d8e16a-eb\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_d8e16a-eb mark, .wp-block-kadence-advancedheading.kt-adv-heading_d8e16a-eb[data-kb-block=\"kb-adv-heading_d8e16a-eb\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_55 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6617a00f6407e\"><span class=\"\"><span style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #4ff74c;color:#4ff74c\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #4ff74c;color:#4ff74c\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6617a00f6407e\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/moneymakersandsavers.com\/how-to-get-the-savers-tax-credit\/#What_is_the_Saver%E2%80%99s_Tax_Credit\" title=\"What is the Saver&#8217;s Tax Credit?\">What is the Saver&#8217;s Tax Credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/moneymakersandsavers.com\/how-to-get-the-savers-tax-credit\/#Which_retirement_accounts_count_towards_the_Saver%E2%80%99s_Tax_Credit\" title=\"Which retirement accounts count towards the Saver&#8217;s Tax Credit?\">Which retirement accounts count towards the Saver&#8217;s Tax Credit?<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"kt-adv-heading_d8e16a-eb wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_d8e16a-eb\"><span class=\"ez-toc-section\" id=\"What_is_the_Saver%E2%80%99s_Tax_Credit\"><\/span>What is the Saver&#8217;s Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>The Saver&#8217;s Tax Credit is also referred to as the retirement savings contributions credit. This is because it is a tax credit available to regular workers who contribute to retirement accounts. Single filers can receive a $1,000 non-refundable credit and joint filers can get $2,000.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Depending on income levels (see charts below), the credit is worth either 10%, 20%, or 50% of a person\u2019s eligible contribution. In order to get the Saver&#8217;s Tax Credit, single filers must have an adjusted gross income of $33,000 or less. The income limit is $49,500 for a head of household and $66,000 for married couples filing jointly.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Claiming a saver\u2019s credit when&nbsp;contributing to a retirement plan&nbsp;can reduce an individual\u2019s income tax burden in two ways. First, the contribution to the plan itself qualifies as a <a href=\"https:\/\/moneymakersandsavers.com\/what-are-tax-deductions\/\" target=\"_blank\" data-type=\"post\" data-id=\"2783\" rel=\"noreferrer noopener\">tax deduction<\/a>. Second, the saver\u2019s credit reduces the actual taxes owed, dollar for dollar.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"953\" height=\"589\" src=\"https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/image-3.png\" alt=\"saver's tax credit\" class=\"wp-image-4182\" srcset=\"https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/image-3.png 953w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/image-3-300x185.png 300w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/image-3-768x475.png 768w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/image-3-150x93.png 150w\" sizes=\"(max-width: 953px) 100vw, 953px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>In order to claim this tax credit filers need to fill out <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-8880\" target=\"_blank\" rel=\"noreferrer noopener\">IRS form 8880<\/a>&nbsp;to claim the credit on their tax return. You also have to be 18 years or older and not be claimed as a dependent on anyone else&#8217;s tax returns<\/p>\n\n\n\n<p><\/p>\n\n\n<style>.wp-block-kadence-advancedheading.kt-adv-heading_1639ef-4f, .wp-block-kadence-advancedheading.kt-adv-heading_1639ef-4f[data-kb-block=\"kb-adv-heading_1639ef-4f\"]{font-style:normal;}.wp-block-kadence-advancedheading.kt-adv-heading_1639ef-4f mark, .wp-block-kadence-advancedheading.kt-adv-heading_1639ef-4f[data-kb-block=\"kb-adv-heading_1639ef-4f\"] mark{font-style:normal;color:#f76a0c;padding-top:0px;padding-right:0px;padding-bottom:0px;padding-left:0px;}<\/style>\n<h2 class=\"kt-adv-heading_1639ef-4f wp-block-kadence-advancedheading\" data-kb-block=\"kb-adv-heading_1639ef-4f\"><span class=\"ez-toc-section\" id=\"Which_retirement_accounts_count_towards_the_Saver%E2%80%99s_Tax_Credit\"><\/span>Which retirement accounts count towards the Saver&#8217;s Tax Credit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>[slm_content_lock]<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/moneymakersandsavers.com\/traditional-and-roth-401k\/\" data-type=\"post\" data-id=\"242\">401ks<\/a>, 403bs, 501c-18D plans, and traditional or Roth IRA retirement accounts qualify for the Saver&#8217;s Tax Credit, but, unfortunately, it doesn&#8217;t apply to rollover IRAs. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Government retirement accounts like 457bs, SARSEPs, or SIMPLE plans are also eligible for this tax credit.<\/p>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/savers-tax-credit-2.jpg\" alt=\"saver's tax credit 2\" class=\"wp-image-4184\" srcset=\"https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/savers-tax-credit-2.jpg 1024w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/savers-tax-credit-2-300x200.jpg 300w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/savers-tax-credit-2-768x512.jpg 768w, https:\/\/moneymakersandsavers.com\/wp-content\/uploads\/2022\/03\/savers-tax-credit-2-150x100.jpg 150w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n<p><\/p>\n\n\n\n<p>Designated beneficiaries of contributions to an <a href=\"https:\/\/secure.ssa.gov\/poms.nsf\/lnx\/0501130740\" target=\"_blank\" rel=\"noopener\">Achieving a Better Life Experience account<\/a> to be eligible for the saver\u2019s credit. These accounts are \u201ctax-advantaged savings programs for eligible people with disabilities which helps designated beneficiaries pay for qualified disability expenses They are also tax-free if used for qualified disability expenses<\/p>\n\n\n\n<p><strong>[\/slm_content_lock]<\/strong><\/p>\n\n\n\n<p><strong>However, one thing to keep in mind about the Saver&#8217;s Tax Credit is that your credit amount may be reduced if you had any recent distributions from a retirement plan, IRA, or an Achieving a Better Life Experience&nbsp;account!<\/strong><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Want to file your taxes for 100% FREE, check out our article on <a href=\"https:\/\/moneymakersandsavers.com\/how-to-file-your-taxes-for-free\/\" data-type=\"post\" data-id=\"3946\">&#8220;How to File Your Taxes For Free!&#8221;<\/a><\/strong>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><strong>Disclaimer: I am not any sort of investment or financial professional giving any sort of legal advice. I\u2019m just some guy trying to teach other people about how they might navigate the financial world.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is the Saver&#8217;s Tax Credit? The Saver&#8217;s Tax Credit is also referred to as the retirement savings contributions credit. This is because it is a tax credit available to regular workers who contribute to retirement accounts. Single filers can receive a $1,000 non-refundable credit and joint filers can get $2,000. Depending on income levels&#8230;<\/p>\n","protected":false},"author":159998696,"featured_media":4185,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1492,1498],"tags":[1621,1622,1497,1427],"_links":{"self":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/4180"}],"collection":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/users\/159998696"}],"replies":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/comments?post=4180"}],"version-history":[{"count":5,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/4180\/revisions"}],"predecessor-version":[{"id":4192,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/posts\/4180\/revisions\/4192"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/media\/4185"}],"wp:attachment":[{"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/media?parent=4180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/categories?post=4180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/moneymakersandsavers.com\/wp-json\/wp\/v2\/tags?post=4180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}