| Are You Eligible for a Tax Credit? |
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If you’re currently saving for retirement through Penn’s retirement plans or contributing to an Individual Retirement Account (IRA), you may be eligible for a tax credit for calendar year 2009. Up to $1,000 of your retirement savings could be returned as a tax credit if you meet certain income limits and eligibility requirements, including the following:
• You must be 18 years of age or older and not a full-time student in order to be eligible for the tax credit.
• You’re not eligible to receive the credit if you’re claimed as a dependent on someone else’s tax return.
• You must be within the following income limits in order to receive the credit:
Modified Adjusted Gross Income |
Credit % |
Maximum Tax Credit* |
Married Filing Jointly |
Head of Household |
Single |
$0 - $33,000 |
$0 - $24,750 |
$0 - $16,500 |
50% of first $2,000 deferred |
$1,000 |
$33,001 - $36,000 |
$24,751 - $27,000 |
$16,501 - $18,000 |
20% of first $2,000 deferred |
$400 |
$36,001 - $55,500 |
$27,001 - $41,625 |
$18,001 - $27,750 |
10% of first $2,000 deferred |
$200 |
- The maximum contribution taken into account for an individual is $2,000.
Source: Internal Revenue Service
Example: Amy contributes $2,000 to her employer’s retirement plan for the 2009 calendar year. Because she’s single and her modified adjusted gross income is less than $16,500, she’s eligible for a $1,000 tax credit. The credit reduces the amount of taxes that she owes (or increases her tax refund) by $1,000 at tax-filing time.
For more information about the saver’s tax credit, visit the Internal Revenue Service’s website at www.irs.gov.
—Division of Human Resources
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