People that save for retirement have an opportunity to earn $2,000 next year.
The IRS has expanded its eligibility range for the Saver’s Credit tax break.
The Saver’s Credit was known as the retirement savings contributions credit. It gives Americans that work to contribute to their retirement account a reduction on their tax bill.
401ks and IRAs are eligible for the tax credit. Also eligible are 403bs and 457bs.
Individuals can get as much as $1,000, while married couples can collect $2,000 in credit.
Who is eligible and how can they get it?
In order to be eligible for this credit, head of household incomes need to be below $51,000 in 2022. If married filing jointly their income cannot exceed $68,000.
For 2021 the limits for married couples were $66,000, for head of household was $49,500, and for others was $33,000.
2020 limits were $65,000 for married couples, $48,750 for head of household, and $32,500 for others.
The Social Security Administration reports that in 2019 half of the workers in the U.S. made under $35,000.
To claim the credit you need to fill out IRS Form 8880 with your tax return.
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