If you contribute to a retirement plan, like a 401(k) or an IRA, you may be able to claim the Saver's Credit. This credit can help you save for retirement and reduce the tax you owe. Here are some key facts that you should know about this important tax credit:

  • Formal Name. The formal name of the Saver's Credit is the Retirement Savings Contribution Credit. The Saver's Credit is in addition to other tax savings you get if you set aside money for retirement. For example, you may be able to deduct your contributions to a traditional IRA.
  • Maximum Credit. The Saver's Credit is worth up to $2,000 if you are married and file a joint return. The credit is worth up to $1,000 if you are single. The credit you receive is often much less than the maximum. This is due in part because of the deductions and other credits you may claim.
  • Income Limits. You may be able to claim the credit depending on your filing status and the amount of your yearly income. You may be eligible for the credit on your 2014 tax return if you are:
    • Married filing jointly with income up to $60,000
    • Head of household with income up to $45,000
    • Married filing separately or a single taxpayer with income up to $30,000
  • Other Rules. Other rules that apply to the credit include:
    • You must be at least 18 years of age.
    • You can't have been a full–time student in 2014.
    • No other person can claim you as a dependent on their tax return.
  • Contribution Date. You must have contributed to a 401(k) plan or similar workplace plan by the end of the year to claim this credit. However, you can contribute to an IRA by the due date of your tax return and still have it count for 2014. The due date for most people is April 15, 2015.
  • Form 8880. File Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit.

TaxAct will help you determine if you qualify for the Saver's Credit, and if you do, also help maximize your credit and complete Form 8880 for you.

Additional IRS Resources:

  • Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs)
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    Upcoming Tax Dates

    February 10 — Social security, Medicare, and withheld income tax
    File Form 941 for the fourth quarter of 2017. This due date applies only if you deposited the tax for the quarter timely, properly, and in full.

    February 10 — Certain small employers
    File Form 944 to report social security and Medicare taxes and withheld income tax for 2017. This due date applies only if you deposited the tax for the year timely, properly, and in full.

    February 10 — Farm employers
    File Form 943 to report social security and Medicare taxes and withheld income tax for 2017. This due date applies only if you deposited the tax for the year timely, properly, and in full.

    February 10 — Federal unemployment tax
    File Form 940 for 2017. This due date applies only if you deposited the tax for the year timely, properly, and in full.

    February 10 — Employees who work for tips
    If you received $20 or more in tips during January, report them to your employer Details

    February 15 — All businesses
    Give annual information statements to recipients of certain payments you made during 2017 Details

    February 15 — Social security, Medicare, and withheld income tax
    If the monthly deposit rule applies, deposit the tax for payments in January.

    February 15 — All employers
    Begin withholding income tax from the pay of any employee who claimed exemption from withholding in 2017, but did not give you Form W4 to continue the exemption this year.

    February 15 — Individuals
    If you claimed exemption from income tax withholding last year on the Form W-4, you must file a new Form W-04 by this date to continue your exemption for another year Details

    February 19 — Everyone
    Federal Holiday (Washington's Birthday) Details

    February 28 — All businesses
    File information returns (for example, Forms 1099) for certain payments you made during 2017.

    February 28 — Payers of gambling winnings.
    File Form 1096 along with Copy A of all the Forms W2G you issued for 2017. If you file Forms W2G electronically, your due date for filing them with the IRS will be extended to 03-31. The due date for giving the recipient these forms remains 01-31.

    February 28 — All employers
    File Form W3, Transmittal of Wage and Tax Statements, along with Copy A of all the Forms W2 you issued for 2017. If you file Forms W2 electronically, your due date for filing them with the SSA will be extended to 03-31. The due date for giving the recipient these forms remains 01-31.

    February 28 — Large food and beverage establishment employers
    File Form 8027, Employer's Annual Information Return of Tip Income and Allocated Tips. Use Form 8027T, Transmittal of Employer's Annual Information Return of Tip Income and Allocated Tips, to summarize and transmit Forms 8027 if you have more than one establishment. If you file Forms 8027 electronically, your due date for filing them with the IRS will be extended to 03-31.

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