Truth 41Retirement saver’s credit
If you contribute to a retirement savings account, either at work or on your own, you might be able to get a double tax break.
The Saver’s Credit provides low- and moderate-income workers the opportunity to offset part of their contributions to an IRA, as well as money put into a company retirement plan.
Because this is a tax credit instead of a deduction, you get more bang for your tax break buck. A tax deduction reduces your income, meaning the tax bill you compute using that income amount should be smaller.
But a credit is claimed after you arrive at your tax bill. The credit amount reduces that tax bill dollar-for-dollar. If you owe $1,000 and are eligible for a $500 credit, your tax bill is halved. ...
Get The Truth About Paying Fewer Taxes now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
