Many Don’t Take Advantage of “Saver’s Credit” When Doing Their Taxes
A recent survey found that many people aren’t aware of a “tax credit designed to help low- to middle-income Americans build their retirement nest eggs” typically called the Saver’s Credit. Officially, it’s name is the Retirement Savings Contributions Credit. One important way to know if you’re not taking advantage of it is if you’re using the Form 1040EZ to file your taxes. Form 1040EZ doesn’t allow you to take advantage of it because it can “only be claimed using the Form 1040, Form 1040A or Form 1040NR (along with the accompanying Form 8880).” Even if you’re already contributing to your company’s 401(k) play, the Saver’s Credit may still be able to be claimed.
Read the article on the survey here and check out the U.S. Government’s site about the Saver’s Credit here.
