In this episode of ‘Dr. Friday Tax Tips – One Minute Moment,’ Dr. Friday highlights the often overlooked Saver’s Credit, an essential tax break for low to moderate income earners. Tailored for individuals and couples earning below certain thresholds, the Saver’s Credit offers a significant opportunity to reduce tax liability by contributing to retirement accounts such as 401(k)s, IRAs, and Roths. Dr. Friday breaks down the income limits and potential savings – up to $2,000 for individuals and $4,000 for married couples, emphasizing the impact this credit can have on your financial well-being. Additionally, the episode sheds light on the percentage of contribution matched by the credit, especially beneficial for those able to set aside money for future savings. Tune into the Dr. Friday Call-In Show every Saturday for more insightful tax advice.
Transcript
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one minute moment.
Savers credit, I never hear a lot of people talk about it, partly because it really is for the lower income. So if you’re married making less than $73,000 and you put money into a 401k or an IRA or a Roth or whatever, you can save up to $2,000, $4,000 for a married couple. Head of household, you have to have less than $54,750, single $36,500. Single people get up to 50% of what you contribute, up to $2,000. That’s a lot of money, especially if you have the ability to set it aside. That again can be a 401k, an IRA, a Roth, anything that you can set aside the money for later savings.
You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.