Get breaking news alerts via email

Click here to manage your alerts
To prepare for possible market volatility, make sure you have evaluated your risk tolerance and adjust your investment strategy accordingly. Scott Eells/Bloomberg
Saving for retirement can yield a tax break
Personal finance » Credits are there for those with modest incomes.
First Published Apr 12 2013 07:49 am • Last Updated Apr 12 2013 07:49 am

The Tribune is providing down-the-stretch tips and reminders to help you complete the right forms, apply for all the deductions and credits you can, and get your tax filings in on time by April 15.

Countdown Tip No. 3: Reduce your taxes by saving for retirement.

At a glance

Countdown to April 15 — last-minute tips

Haven’t filed your taxes yet? Check out The Tribune’s Countdown to Tax Day series with information that can help as the deadline approaches:

April 4 » Where to get free help

April 5 » How to avoid tax scams

April 6 » The joys of filing electronically

Sunday » What’s the Earned Income Tax Credit?

Tuesday » Don’t miss out on the Child and Dependent Care Credit

Wednesday » Understand your taxes if you’re self-employed

Thursday » Watch out for fees when paying taxes by credit card

Today » Reduce your taxes by saving for retirement

Saturday » Use the Taxpayer Advocate when tackling the IRS

Sunday » Don’t ignore your taxes; file an extension to get more time

Join the Discussion
Post a Comment

If you earn a modest living and still funnel money into a retirement account, you could be eligible for a nice tax credit.

Known as the saver’s credit, those in low- and middle-income brackets who are setting aside money for retirement can claim up to $1,000 for individuals and $2,000 for married couples. It’s a credit, so it reduces income taxes dollar-for-dollar, and workers can file for it and still get a tax deduction for contributing to a retirement account.

To qualify for the saver’s credit, an individual must be pay into a traditional or Roth IRA, 401(k), or a governmental 457 plan or 403(b) annuity plan. The taxpayer can’t be a full-time student or a dependent on someone else’s tax filing.

The amount of the credit is based on filing status and income level. For instance, if you’re single and earn less than $28,750 a year, or if you’re a married couple earning up to $57,500, you could claim the credit. But there’s no promise that you’ll get the full amount. According to the Internal Revenue Service, the credit "is often much less and, due in part to the impact of other deductions and credits, may, in fact, be zero for some taxpayers."

If you’re income eligible, you have until April 15 to set up an IRA or add money to your retirement account to get the credit for 2012.

Questions? IRS.gov, of course.

Coming up tomorrow: Use the Taxpayer Advocate when tackling the IRS.

story continues below
story continues below


Twitter: @jnpearce

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.