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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: dandarc on December 24, 2014, 07:25:31 PM

Title: Savers Tax Credit
Post by: dandarc 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.
Title: Re: Savers Tax Credit
Post by: dandarc 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?
Title: Re: Savers Tax Credit
Post by: dandarc 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.