Credit for Qualified Retirement Savings Contribution
Here we are again its tax time. And with all the turmoil in our
country not to mention in our private lives, Uncle Sam expects
us to sit up and take notice of the time of year and file our
tax returns with the IRS. Well I don’t know about you but with
all the tax law changes and the comings and goings it can be
down right confusing for the average American. I spend half the
year before January studying and preparing to meet all of my
clients needs and goals, and I still can find a surprise or two
at my desk each morning. Take for instance the new “Savers Tax
Credit,” this little gem will only be with us the next four
years, by the time it catches on…it’ll be gone.
Retirement Savings Contribution Credit is a tax credit allowing
eligible contributions to an employer sponsored retirement plan
or an IRA become tax deductible. A percentage of your qualifying
retirement contributions are determined by using federal form
8880.
Qualifying retirement plans are Traditional and or Roth IRA
contributions, and salary reduction contributions to most
employer sponsored retirement plans (401k). You may include
certain voluntary after tax plans as well.
You cannot claim this credit if any of these circumstances apply
to you: You were born after January 1,1985 You are claimed as
dependents on another persons return You are a full time student
Need more information just click Tax Tools on this
website,http://www.ezminimall.com
Credit for Qualified Retirement Savings Contribution
Here we are again its tax time. And with all the turmoil in our
country not to mention in our private lives, Uncle Sam expects
us to sit up and take notice of the time of year and file our
tax returns with the IRS. Well I don’t know about you but with
all the tax law changes and the comings and goings it can be
down right confusing for the average American. I spend half the
year before January studying and preparing to meet all of my
clients needs and goals, and I still can find a surprise or two
at my desk each morning. Take for instance the new “Savers Tax
Credit,” this little gem will only be with us the next four
years, by the time it catches on…it’ll be gone.
Retirement Savings Contribution Credit is a tax credit allowing
eligible contributions to an employer sponsored retirement plan
or an IRA become tax deductible. A percentage of your qualifying
retirement contributions are determined by using federal form
8880.
Qualifying retirement plans are Traditional and or Roth IRA
contributions, and salary reduction contributions to most
employer sponsored retirement plans (401k). You may include
certain voluntary after tax plans as well.
You cannot claim this credit if any of these circumstances apply
to you: You were born after January 1,1985 You are claimed as
dependents on another persons return You are a full time student
Table of Income and Filing Status Percentage for Retirement
Savings Contribution If your filing status isAnd Your AGI isYour
Percentage is Married Filing JointlyNot over
30,00030,000------32,50032,500-------49,99950,000 or
Above5020100 Head of HouseholdNot over
22,50022,500----24,37524,375----37,50037,501 or Above5020100
Single, Qualifying Widow(er) or Married Filing SeparatelyNot
Over 15,00015,000-----16,25016,251----25,00025,001 or
Above5020100
Need more information just click Tax Tools on this website.
About the author:
Tax Professional at a National Tax Firm
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