Make A Retirement Contribution - Get A Tax Credit

If you have an Adjusted Gross Income (AGI) of $50,000 or less you may qualify for the retirement tax credit. What a great deal! Deposit money to a retirement account and the government gives one money back. This is a great way to build one's retirement account early in a career.

Here's how it works:

	Retirement Tax Credit Filing Status and AGI Limits
% Credit Against $2,000 Contribution	Single, Widower, Married Filing Separately	Married Filing Jointly	Head of Household
50%	Up to $15,000	Up to $30,0000	Up to $22,500
20%	$15,001 to $16,250	$30,001 to $32,500	$22,500 to $24,375
10%	$16,251 to $25,000	$32,501 to $50,000	$24,376 to $37,500
no credit	$25,001 or more	$50,001 or more	$37,501 or more

The maximum tax credit is $1,000 per person. Contributions to 401Ks and IRAs both count. This is a great use of the government's money. Make at least $2,000 retirement contribution and the government will refund one up to $1,000 depending on one's income. For more details, see Form 8880, Credit for Qualified Retirement Savings Contributions and complete the form to arrive at your exact credit rate and amount.

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This is not financial advice. Please consult a professional advisor.

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