Are you among the nearly two in three American workers who are overlooking a tax credit that they may be eligible for? Transamerica Center for Retirement Studies finds 64 percent of American workers don’t know about the Saver’s Credit.
The Saver’s Credit, or the Retirement Savings Contributions Credit, is available to taxpayers who are saving for retirement. Transamerica leaders say millions of Americans could be missing out on the Saver’s Credit and among those not saving for retirement yet, the credit could be a good incentive for them to get started.
So how do you claim the credit? According to the IRS website: you’re eligible for the credit if you’re 18 years of age or older, not a full-time student and not claimed as a dependent on another person’s return. The amount of credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income.
You can find out more about the Saver’s Credit and the IRS forms by going to the IRS website.