The Internal Revenue Service (IRS) issued a reminder to low- and moderate-income taxpayers that they can save more in taxes next year by taking advantage of a “special” tax credit.
The “special” tax credit is the Retirement Savings Contributions Credit, also known as Saver’s Credit. Qualified taxpayers can use it to offset a portion of voluntary contributions they make to 401(k) plans, IRAs, and other retirement plans, the IRS said in a Nov. 22 press release. To qualify, a taxpayer’s adjusted gross annual income should be below $36,500 if filing individually, $73,000 for married couples filing jointly, and $54,750 for heads of households.
