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Take Advantage of the Saver's Credit

If you save in a 403(b) Smart Account, don't overlook this important credit when you file your taxes.

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The deadline to file your 2017 taxes is Tuesday, April 17, 2018.

That might seem like the distant future, but if you have not yet thought about your taxes, start now. You don’t want to be in a rush on tax day and overlook some important tax credits.   

What Are Credits?

Have a look at page two of your Federal Income Tax return form; here’s where the fun is. You can think of credits like coupons. If you qualify for any, you save big on taxes. More credits mean more savings.

Saver's Credit

The Retirement Savings Contributions Credit, known as the Saver's Credit (item 51 on IRS Form 1040), is a great benefit for participants who save money in a 403(b) Smart Account.

The Saver's Credit can be up to $2,000, or up to $4,000 if filing jointly. It is calculated based on your income, and how much you save.

Who's Eligible for the Credit?

To qualify for this credit, you must be at least 18-years-old, not a dependent or full-time student, and have a filing status and adjusted gross income (AGI) of:

  • Single with AGI up to $31,000
  • Head of Household with AGI up to $46,500
  • Married Filing Jointly, with AGI up to $62,000
Be Smart. 403(b) Smart

If you did not save in 2017, why not start saving this year and claim the credit on your 2018 tax return?

Open a 403(b) Smart Account today. Just download the 403(b) Smart Account form, and return it to the human resources department at your Y so that you can begin your saving via payroll deduction.