I have a question about saving credit. What’s the maximum Saver’s Credit I can receive?
The maximum Saver’s Credit is $1,000 per individual. If you file jointly, each spouse can receive the $1,000 Saver’s Credit, if eligible. The Saver’s Credit, formerly called the Retirement Savings Contributions Credit, provides a special tax break to low- and moderate-income taxpayers who are actively saving for retirement. Your filing status and adjusted gross income affect the amount of the credit at the rates of 50%, 20%, or 10% of your retirement plan or IRA contributions up to a contribution amount of $2,000. See the IRS publication form 8880 and instructions at www.irs.gov to see the rate of credit you are eligible for.
Can you deduct property tax that was paid from an escrow account? Learn more from the tax experts at H&R Block.
You can claim the standard deduction or itemized deductions to lower your taxable income. The standard deduction lowers your income by one fixed amount. On the other hand, itemized deductions are made up of a list of eligible expenses. You can claim whichever lowers your tax bill the most.
Learn more about deducting mortgage interest and points on a variety of properties from the tax experts at H&R Block.
The Research Credit is an income tax credit that was designed to encourage businesses to invest more in research and development.