Grok Half of America didn't expect this hint: SSA just confirmed it, up to $2,000
Social Security and the IRS grant a tax benefit that makes millions of Americans smile: it will convince you
United States Social Security (SSA) and the Internal Revenue Service (IRS) have confirmed news that has surprised many. The Saver's Credit, also known as Saver's Credit, can grant up to $2,000 to married couples who meet certain requirements. This tax benefit is designed to encourage retirement savings among people with low or moderate incomes.
Take note of the Saver's Credit: Many Americans applaud it in the US
The Saver's Credit is a non-refundable tax credit that allows taxpayers to reduce their tax bill based on eligible contributions they make to retirement accounts, such as IRA accounts or 401(k) plans. The main goal is to encourage retirement savings, especially among those who might have difficulty doing so.
The amount of the credit varies according to the adjusted gross income (AGI) and the taxpayer's marital status. For the 2024 tax year, the credit can be 50%, 20%, or 10% of eligible contributions, up to a maximum of $2,000 for individuals and $4,000 for married couples filing jointly. This means the maximum credit is $1,000 for individuals and $2,000 for married couples.
Are you eligible? SSA clears up all your doubts
To qualify for the Saver's Credit, taxpayers must be 18 years old or older and not be full-time students. In addition, they must not be claimed as dependents on another person's tax return.
They must also have made voluntary contributions to eligible retirement accounts during the tax year. Contributions to the following accounts qualify for the credit: traditional or Roth IRA accounts, 401(k), 403(b), 457(b) plans, and other employer-sponsored retirement plans.
ABLE accounts for people with disabilities also qualify, if the taxpayer is the designated beneficiary. It's important to note that rollover contributions are not eligible for the credit.
To claim the Saver's Credit, according to SSA, taxpayers will complete IRS Form 8880 and submit it with their tax return. The credit can reduce the amount of taxes owed or increase the refund, but it can't generate a refund if no taxes are owed.
This is what those who've taken advantage of it say
Many taxpayers who've taken advantage of the Saver's Credit highlight its usefulness in increasing their retirement savings. However, awareness of this benefit is limited. According to a report, only 44% of taxpayers with incomes below $50,000 are aware of the credit's existence.
The Saver's Credit represents a significant opportunity for workers with low or moderate incomes to increase their retirement savings and reduce their tax burden. It's essential that more people know about and take advantage of this benefit to ensure a more secure retirement.
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