9 Ways to Get Huge Tax Credits

4) Contribute to Your Retirement Savings

Also commonly referred to as the Retirement Savings Contributions Credit, the Saver’s Tax Credit appeals to independent tax payers who are over the age of 18 years old and are not considered a full time student. In 2016, the Saver’s Tax Credit could be claimed at a credit rate of 50% of your yearly retirement contribution if you were a single tax payer with an Adjusted Gross Income of no more than $18,5000; a head of household tax payer making no more than $27,750 on their AGI; or a married couple filing jointly with a combined Adjusted Gross Income of no more than $37,000. Tax Payers who have made rollover contributions from a separate retirement plan or savings account are not qualified for the credit. Contributions made to popular plans such as a 401K or Roth IRA are indeed eligible for the Saver’s Tax Credit.