Are You Eligible for a $1,000 Tax Credit? |
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Here’s some good news for income tax filing season: if you put money toward a retirement plan last year, you may be able to get credit for it! (If you didn’t, now’s a good time to get started for 2015. Simply go to www.hr.upenn.edu/myhr/benefits/retirement and click on Penn’s secure online retirement plan link.)
Thanks to the Saver’s Credit, you may be eligible for a tax credit of up to $1,000 ($2,000 for joint filers). It gives a special tax break to low- and moderate-income taxpayers who are saving for retirement. The amount of the credit depends on your adjusted gross income (AGI), tax filing status and how much you contributed to your retirement plan in 2014. It can be 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly).
Look at the table below to see if you’re eligible and to find your credit.
2014 Saver’s Credit |
| Credit Rate |
Married Filing Jointly |
Head of Household |
All Other Filers* |
| 50% of your contribution |
AGI not more than $36,000 |
AGI not more than $27,00 |
AGI not more than $18,000 |
| 20% of your contribution |
$36,001 - $39,000 |
$27,001 - $29,250 |
$18,001 - $19,500 |
| 10% of your contribution |
$39,001-$60,000 |
$29,251 - $45,000 |
$19,501 - $30,000 |
| 0% of your contribution |
more than $60,000 |
more than $45,000 |
more than $30,000 |
Keep in mind that you can’t be claimed as a dependent on someone else’s tax return if you want to take advantage of the Saver’s Credit. For more information, visit www.irs.gov
To learn how Penn’s retirement savings benefits help you prepare for a secure future, visit www.hr.upenn.edu/myhr/registration to sign up for the free February 27 brown bag lunch workshop, or visit www.hr.upenn.edu/retirement for detailed plan information and professional retirement counseling links.
—Division of Human Resources
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