|ST LOUIS Ė The Internal Revenue Service wants you to know that saving for retirement for some people may make them eligible for a tax credit that can reduce the tax they owe. For 2013 this credit must be taken before the end of the current year.
If a taxpayer contributes to an employer-sponsored retirement plan, such as a 401(k) or to an IRA, he or she may be eligible for the Saverís Credit, formally known as the Retirement Savings Contribution Credit.
In tax-year 2011, the most recent year for which complete figures are available, saverís credits worth almost $25.7 million were claimed on more than 151,000 individual income tax returns in Missouri.
The credit can be worth up to $2,000 for married couples filing a joint return or $1,000 for single taxpayers. The saverís credit may be claimed by married couples filing jointly with incomes up to $59,000; Heads of Household with incomes up to $44,250; and married individuals filing separately and singles with incomes up to $29,500.
For more information on the Saverís Credit, see IRS Publication 590, Individual Retirement Arrangements. Also see IRS Publication 4703, Retirement Savings Contributions Credit, and IRS News Release: 2013-93, Plan Now to Get Full Benefit of Saverís Credit; Tax Credit Helps Low- and Moderate-Income Workers Save for Retirement found here.