pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Congrats, I had a very similar experience this year. By only working 2 months I actually qualified for the savers credit which seems really wrong.. but oh well. I'll take it. ....
Well.... almost free!
Karen's post in another thread reminded me of this retirement savings contributions credit that I am helping DS take full advantage of and wanted to bring to people's attention.
DS is working... can provide for himself but doesn't make a lot...and I do his taxes for him. He has some taxable account money with Vanguard as well as a tIRA and Roth IRA.
For a single the credit is 50% of what you save in a retirement account if your AGI is $18,250 or less and 20% from $18,250 to $19,750 and 10% from $19,750 to $30,500.
What I found is if I put a portion of his retirement savings for 2015 in the tIRA I could get him down into the 50% credit bracket and then put the rest of the savings needed to maximize his credit in his Roth and by doing this his net tax after credits was zero and he gets a refund for 100% of what was withheld in 2015.
Pretty sweet, especially in his case since it is just shifting money from taxable accounts to tIRA and Roth. TT makes it easy to play with different savings amount to see where the sweet spots are.
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