Start investing for retirement and get an extra tax credit, too!
If you make contributions to an employer-sponsored retirement plan or to an IRA, you may be eligible for a tax credit.
1. The Savers Credit applies to individuals with a filing status and 2011 income of:
• Single, married filing separately, or qualifying widow(er), with income up to $28,250
• Head of Household with income up to $42,375
• Married Filing Jointly, with incomes up to $56,500
2. You must be at least 18 years, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return.
3. You may be able to take a credit of up to $1,000 ($2,000 if filing jointly).
4. The Savers Credit is in addition to other tax benefits you may receive for retirement contributions.
5. To claim the credit use Form 8880, Credit for Qualified Retirement Savings Contributions.
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