Saver credit

[ILLMAS]

I caught a small glimpse of this man talking about this credit called savers credit, unfortunately I cannot see the video, has anyone else heard of this credit and offer it to it's client?

http://www.myfoxchicago.com/dpp/good_day/save-money-taxes-credits-mr-refund-mike-kolar-20110321

MAS

[BROOKLYNCPA]

FOrm 8880

[Pacun]

Whoever is HH with one dependent and makes about 20K-24,999 should put money on an IRA when doing their taxes so that the credit is fully utilized. This is a non-refundable credit and it is automatically calculated if you correctly enter the W-2 information on ATX's W-2 screen.

Who will have money for 401K or IRA if you make less than 25K? Those ladies and men who get a bunch on child support.

Also, if you make about 29K and you open an IRA for 5K, your AGI goes down to 24K.

[mcb39]

I have already seen this work to the point where if a client put $200 in an IRA, it dropped her down enough to have her 401 contribution enter into the mix and she got an immediate savers credit of $400. Of course, she did as I advised. And don't forget the married couple who can make up to $55,500 and qualify for the credit even if only one works. I try to eke this credit out of as many returns as I can because it is the AGI that counts, not the Gross so things like SE Health, HSA, IRA contributions, can trigger the credit.