The Saver’s Credit in action
Let’s say you’re a single filer who earned $19,000 for the year. Most of your earnings consisted of brand ambassador work that was not taxed throughout the year so you’re stuck with a $1,000 tax bill. Instead of worrying about how you’re going to pay that off, the Saver’s Credit could be added to your tax return to save the day.
If you contribute $2,000 to the Roth IRA, you would be eligible for a 50% credit that is worth $1,000. When you apply the credit to your tax return, you wipe away your tax bill.
Don’t miss out on this benefit
If you qualify, the Saver’s Credit is an opportunity that you want to jump on — especially if you expect to owe taxes.
What’s even better is understanding the impact of this tax credit over time. If you’re married and earn a $2,000 credit for 40 years, that’s $80,000 of free money you’ve earned just for saving toward retirement!
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