Author Topic: Savers Tax Credit  (Read 1232 times)

dandarc

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Savers Tax Credit
« on: December 24, 2014, 07:25:31 PM »
Helping out my brother-in-law - question about Savers Tax Credit.

It just says if AGI is below 18K and you're single, you get that 50% credit.  If I can convince him to put 2K into a traditional IRA, that would push his AGI below the 18K cutoff.

Is that right?

If so, he'll net out something like $1400 in lower taxes, and have 2K working for him in an IRA.

dandarc

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Re: Savers Tax Credit
« Reply #1 on: December 24, 2014, 07:26:56 PM »
And does the IRA contribution have to be made by the end of 2014, or is it the tax-filing deadline?

dandarc

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Re: Savers Tax Credit
« Reply #2 on: December 24, 2014, 07:32:12 PM »
Blah - confused AGI with taxable income.  Gonna be a tougher sell at 10% compared to 50% on the credit.