Savers tax credit

 I have a couple random facts for you today. First, the most abused Social Security number ever used in fraud by at least 40,000 different people. It belonged to a secretary at a wallet company. The story goes in 1938, Social Security cards were new, and the secretary’s boss wanted to see how they looked in a wallet. So, every one of their wallets came with a sample Social Security card inside… with her number on it.

The other random fact is about the savers tax credit. For 2021, single filers with adjusted gross income of $33,000 or less may be eligible. Taxpayers married filing jointly must have an AGI of $66,000 or less. (For 2020, the thresholds are $32,500 and $65,000, respectively.) Fall within the income limits and you can claim a tax credit worth up to 1,000 for singles or $2,000 for joint filers. The credit is based on 10%, 20% or 50% of the first $2,000 ($4,000 for joint filers) you contribute to retirement accounts, including 401(k)s, traditional IRAs and Roths. The lower your income, the higher the percentage you get back via the credit. Some people can’t claim the Saver’s Credit, regardless of income. Taxpayers under 18, full-time students and those claimed as dependents aren’t eligible. But if you do qualify, every dollar you claim is one dollar less you have to pay in taxes. To claim the credit, you'll need to complete Form 8880 and submit it with your tax return. We have until Monday the 17th to complete our taxes for 2020 but this savers credit information obviously can be used for 2021, so good to know. Questions call 320-679-5183 or go to yoursafemoneyshow.com.