I’m rounding up financial documents so that I can file my taxes, and I came across some info that might apply to you.
The retirement savings tax credit is a credit designed to reward low to moderate income earners for saving for retirement. If you have made contributions to various retirement accounts and meet certain income requirements, you’ll be able to take a credit for a percentage of your contributions.
You qualify for this credit if:
- $26,500 or less for single, married filing separately, and qualifying widow(er).
- $39,750 for head of household.
- $53,000 for married filing jointly.
For people who pay property taxes but don’t itemize their deductions, you’ll be happy to know that you can now increase your standard deduction by the amount of real property tax you could have claimed if you itemized. (See No. 2 for this tip, or info on the TurboTax site).
Don’t miss 14 ways to slash your taxes here.