Many taxpayer’s are unaware they may be eligible for the Retirement Saver’s tax credit. Subject to income limitations, the government is offering non-refundable tax credits to incentivize taxpayers to invest towards their future retirement.
Here is a quick example of how the credit works. Assume a young married couple will have an
adjusted gross income of $59,000 in 2014.
If each spouse were to contribute $2,000 to an IRA account then they
would receive a tax deduction of $4,000 and a non-refundable tax credit of 10%,
or in this case $400. Without even
taking into account the tax deduction, the couple would instantly earn a 10%
return on their investment.
This is a very simple example used to demonstrate the potential
benefits of the Retirement Saver’s tax credit.
If you are interested in learning more about this tax credit then tax
professionals at Sutton-McCann would love to meet with you and discuss your
situation in detail. The actual amount
of the credit you may receive is dependent on your individual facts and
Nick S. Wold, CPA, MA