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The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014
Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology
John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain
The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious
April 14, 2014
Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time
Eric Schulzke: First degree: How America really recovered from a murder epidemic
Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships
Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin
Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate
Justin Caba: Eating Watermelon Can Help Control High Blood Pressure
April 11, 2014
Rabbi Hillel Goldberg: Silence is much more than golden
Susan Swann: How to value a child for who he is, not just what he does
Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer
Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You
April 9, 2014
Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?
Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau
Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau
Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease
April 8, 2014
Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease
Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear
April 4, 2014
Amy Peterson: A life of love: How to build lasting relationships with your children
John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet
John Ericson: Why 50 million Americans will still have spring allergies after taking meds
Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves
April 2, 2014
Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?
Frank Clayton: Get happy: 20 scientifically proven happiness activities
Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene
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Jewish World Review
Don't Overlook the Retirement Savers' Tax Credit
By
Kimberly Lankford
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JewishWorldReview.com |
You mentioned the retirement savers' tax credit in your article about President Obama's MyRA plan. How does this credit work, and who is eligible?
The credit is 10%, 20% or 50% of your contribution to a retirement account, depending on your income, up to a maximum of $1,000 per person or $2,000 per couple. You can qualify for the retirement savers' tax credit if your adjusted gross income in 2014 is $60,000 or less if married filing jointly, $45,000 or less if filing as head of household, or $30,000 or less if you're a single filer. To qualify, you must contribute to a traditional or Roth IRA (MyRA's count), 401(k), 457, 403(b) or other retirement-savings plan.
If you are married filing jointly, for example, the credit can be worth 50% of your contribution (a $2,000 credit for a $4,000 contribution) if your joint income in 2014 is $36,000 or less. The credit is worth 20% of your contribution if you earn $36,001 to $39,000 and 10% if you earn $39,001 to $60,000. Married couples can't qualify for the credit if they earn more than $60,000. See the IRS factsheet for a table showing the income cutoffs for each level of the credit for joint filers, heads of household and singles for both 2013 and 2014 returns (the income numbers are slightly lower for 2013).
To qualify for the credit, you must be at least 18 years old and not a full-time student, and no one else (such as your parents) can claim an exemption for you on their tax return. You can qualify for this credit even if you make pretax contributions to an employer's retirement plan or nondeductible contributions to a traditional or Roth IRA, or if you get other tax breaks for your retirement-savings contributions -- such as a tax deduction for a traditional IRA contribution.
Keep in mind that this is a credit, not a deduction, so it lowers your income tax dollar for dollar. It is a nonrefundable tax credit, however, which means it cannot reduce your tax liability below zero. See IRS Publication 4703 for more information about the credit.
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Complete IRS Form 8880 to determine the rate and amount of the credit, and file it with your income tax return. If you realize that you would have qualified for the credit in previous years but didn't claim it, you can file an amended return (Form 1040X) as far back as 2010 and still get the money. A 2010 amended return is due by April 15, 2014; a 2011 amended return is due by April 15, 2015; and a 2012 amended return is due by April 15, 2016. See Instructions for Form 1040X for more information about filing an amended return.
You still have until April 15, 2014, to contribute to an IRA for 2013 and qualify for the credit for 2013. See Often Overlooked Opportunities to Save in a Roth IRA for more information about Roth contributions if you're a nonworking spouse, retiree or freelance worker.
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Comment by clicking here. Kimberly Lankford is a Contributing Editor for Kiplinger's Personal Finance.
All contents copyright 2013 The Kiplinger Washington Editors, Inc. Distributed by Tribune Content Agency, LLC
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