Do you qualify for a Retirement Savings Tax Credit?
Did you know that if you contribute to the Bates 403(b) Retirement Plan that you may be eligible to receive a saver’s credit towards your 2015 taxes?
Eligibility and the amount of the credit depends on your filing status and your adjusted gross income. You may receive a credit of 10%, 20% or 50% of the first $2,000 you contributed to the 403(b) plan. The adjusted gross income limits for 2015 by filing status are (these can change each year) :
• Single, married filing separately, or qualifying widow(er), with income up to $30,500
• Head of Household, with income up to $45,750
• Married Filing Jointly, with income up to $61,000
To be eligible for the credit you must have been born before January 2, 1998, you cannot have been a full-time student during the calendar year and cannot be claimed as a dependent on another person’s return. If you received a distribution from your retirement plan within the last two years it may affect whether you can take the credit.
See IRS Form 8880, Credit for Qualified Retirement Savings Contributions, for instructions on how to take the credit or review IRS Publication 590-A, Individual Retirement Arrangements (IRAs), for more information.