Claim saver's tax credit for 2012
WASHINGTON (1/2/13)--If you're a low- or moderate-income worker saving for retirement in a 401(k), an individual retirement account (IRA) , or similar workplace retirement program, you could be eligible to claim a special tax credit of as much as $1,000 for individuals and $2,000 for married couples (U.S. News & World Report Dec. 20).
The saver's credit is highest for retirement savers with the lowest incomes. The credit ranges between 10% and 50% of retirement contributions, with the highest percentage going to savers with the lowest incomes.
If you were unaware of this credit, first introduced as a temporary provision in 2002 and made permanent in 2006, you're not alone: Only one of four workers has heard about it.
You have until April 15 to make qualifying contributions to a new or existing IRA and get the saver's credit on your 2012 tax return. Follow the instructions on IRS form 8880 to figure the saver's credit correctly and claim it.
Copyright © 2011 - Credit Union National Association, Inc.