Many Americans are asking for another stimulus check and they still struggle with the impact of the pandemic.
Fortunately, the IRS has changed some rules and the often forgotten $2,000 saver’s credit may give Americans a break in 2022.
Now, eligibility has been expanded and taxpayers that are married and contributing to their 401ks and IRAs could qualify.
Only 43% of working Americans were aware of this credit, according to a report released by the Transamerica Center for Retirement Studies.
403bs and 457bs also qualify for the credit.
In 2022 the credit will be worth $1,000 for single filers and $2,000 for married filers.
Related: Millions of tax returns, tax refunds remain unprocessed: Can you file 2021 taxes this spring if the IRS owes you money?
In order to be eligible, the head of household filer needs an adjusted gross income of $51,000 or less.
If married filing jointly, the AGI cannot exceed $68,000.
Anyone else can’t exceed $34,000.
In 2019 it was reported that half of the workers in the United States made less than $35,000.
If you make less than the AGI while contributing to a retirement account, this tax break may work for you.
Eligibility limits increased this year from what they were in 2020.
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