If you contribute to a retirement plan, like a 401(k) or an IRA, you may be eligible for the Saver’s Credit. The Saver’s Credit can help you save for retirement and reduce the tax you owe. Here are five facts from the IRS that you should know about this credit:

1. The Saver’s Credit is the short name for the Retirement Savings Contribution Credit. It can be worth up to $2,000 for married couples filing a joint return. The credit is worth up to $1,000 for single taxpayers.
2. Eligibility depends on your filing status and the amount of your yearly income. You may be eligible for the credit on your 2013 tax return if you’re:
   • Married filing separately or a single taxpayer with income up to $29,500
   • Head of household with income up to $44,250
   • Married filing jointly with income up to $59,000
3. Other special rules that apply to the credit include:
   • You must be at least 18 years of age.
   • You can’t have been a full-time student in 2013.
   • You can’t be claimed as a dependent on another person’s tax return.
4. You must have contributed to a 401(k) plan or similar workplace plan by the end of the year to claim this credit. However, you can contribute to an IRA by the due date of your tax return and still have it count for 2013. The due date for most people is April 15, 2014.
5. File Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit. Tax software will do this for you if you e-file.

The Saver’s Credit is in addition to other tax savings you can get if you set aside money for retirement. For example, you may also be able to deduct your contributions to a traditional IRA.

Visit IRS.gov for more information about this important tax credit.

Additional IRS Resources:

• 1040 Central
• IRS Tax Map
• Tax Topic 610 – Retirement Savings Contributions Credit
• Publication 590, Individual Retirement Arrangements
• Publication 4703, Retirement Savings Contributions Credit

IRS Health Care Tax Tip 2014-05, March 6, 2014

The health care law has provisions that may affect your personal income taxes. How the law may affect you may depend on your employment status, whether you participate in a tax favored health plan and your age.

Here are three tips about how the law may affect you:

1. Employment Status
   • If you are employed your employer may report the value of the health insurance provided to you on your W-2 in Box 12 with Code DD.  However, it is not taxable.
   • If you are self-employed, you can deduct the cost of health insurance premiums, within limits, on your income tax return.
2. Tax Favored Health Plans
   • If you have a health flexible spending arrangement (FSA) at work, money you put into it normally reduces your taxable income.
   • If you have a health savings account (HSA) at work, money your employer puts into it for you, within limits, is not taxable.
   • Money you put into an HSA usually counts as a deduction and can lower your taxes.
   • Money you take from an HSA to use for qualified medical expenses is not taxable income; however, withdrawals for other purposes are taxable and can even be subject to an additional tax.
   • If you have a health reimbursement arrangement (HRA) at work, money you receive from it is generally not taxable.
3. AgeIf you are age 65 or older, the threshold for itemized medical deductions remains at 7.5 percent of your Adjusted Gross Income (AGI) until 2017; for others the threshold increased to 10 percent of AGI in 2013. Your AGI is shown on your Form 1040 tax form.

More Information

Find out more about the tax-related provisions of the health care law at IRS.gov/aca.

Find out more about the health care law at HealthCare.gov.