Welcome to GetFinancialInfo.Com! You are here: Home | Retirement |

Today is:

# Tax Credits for Retirement Savings

It is a well-known fact that Americans are miserable failures when it comes to saving for retirement. Well, the government is offering tax credits to change this for some of us.
Tax Credits for Retirement Savings
Social security is going to be under siege as baby boomers hit retirements. Fortunately, many baby boomers have put away piles of cash in 401ks and IRAs. Regardless, most people fail to do all they can in this regard. In an attempt to motivate us taxpayers to save as much as we can for retirement, Uncle Sam is dangling tax credits before us like the proverbial carrot.
The tax credit in question is the Retirement Savings Contributions Credit. Qualify for it and you may be eligible to take a credit of $1,000 for singles and $2,000 if you're filing jointly. The credit is eligible for those that make contributions to 401ks and retirement vehicles. The amount of the credit is determined on a sliding scale based on how much you make and contribute.
You can claim the retirement savings tax credit:
1. Individual taxpayers with incomes of $25,000 or less.
2. Individual taxpayers that are head of households and make $37,500 or less.
3. Married couples filing jointly who make $50,000 or less cumulatively.
There are some very minor restrictions regarding who is eligible for the tax credit. First, you have to be older than 18. Second, you can't be a full time student. Finally, another dependent can't claim you as a dependent on their tax returns.
Importantly, this tax credit is in addition to other tax advantages you gain from piling money into a retirement account. With a 401k, for instance, you can pound in pre-tax earnings, which cuts down your adjusted gross income for the tax year. Once you figure out your taxes, you can then deduct another $1,000 or so for the tax credit. Put another way, saving for your retirement is a no brainer.
The federal government is practically begging you to put away money for retirement. With this tax credit, there is absolutely no reason to fail to comply.
Richard A. Chapo is with BusinessTaxRecovery.com - providing information on tax and taxes. Visit us to read more tax articles and our new tax credits page.

# Relative Articles

- Retirement Can Be More Rewarding If You Plan
- It is fun to crack a joke regarding old age a
- Five-Steps to Successfully Monitoring 401k In
- Pensions - Goverment Action Required
- Retirement Pension To Small?
- Seven Illusions, Delusions
- The Keys to a Happy Retirement
- Why Arizona Ranks High Among Retirees
- Independent Living Post-Retirement
- Millions of U.S. Women May Run Out of Retirem

# Bookmarks

del.icio.us

Digg

Facebook

Newsvine

Reddit

Stumbleupon

Technorati

# SERVICES

- Mortgage
- Loans
- Banking & Credit
- Investing
- Financial Planning
- Insurance
- Taxes
- Accounting
- Bankruptcy
- Business
- Buy to Let
- Legal
- Money
- Retirement
- Sales & Marketing

- Retirement Pension To Small?
- Five-Steps to Successfully Monitoring 401k In
- Retirement Can Be More Rewarding If You Plan
- It is fun to crack a joke regarding old age a
- Pensions - Goverment Action Required
- Seven Illusions, Delusions
- The Keys to a Happy Retirement
- Why Arizona Ranks High Among Retirees

- Why Take a Critical Illness Insurance Policy
- Medical Insurance: The Need of Modern Times
- Mortgage payment protection insurance
- Life Insurance:A Must In Today's Times
- American Express International Healthcare Pla
- Critical Illness: The Answer is Medical Insur
- Critical illness insurance quotes
- The Ways Making Real Money Online

Copyright 2008 GetFinancialInfo.Com