Uncle Sam wants
to help you contribute to an IRA or 401(k).
- You could receive a
credit of up to $1000 for contributing to an
IRA or retirement plan at the office. That's
a credit in addition to the normal tax benefit
- Your adjusted gross income
must be under $50,000 to qualify if you file
a joint return. For those who file individually,
the limit is $25,000 for singles and $37,500
for heads of household.
- The credit is non refundable,
meaning it cannot exceed the amount of taxes
you owe. Full-time students, under age 18, and
the dependents of other taxpayers are not eligible.
Early withdrawal may reduce or eliminate the
- Depending on income, the credit
is between 10% and 50% of your contribution,
and only the first $2,000 contributed qualifies
for the credit. The maximum credit can be between
$200 and $1,000 per taxpayer. This tax credit
would be a direct reduction to the taxes you
JB Mills - Tax & Accounting