Parents may be surprised next month when they see a significant amount of money hit their checking accounts...and each and every month until the end of the year!
How to Get the IRS to "Pitch in" Money to Your IRA
It doesn’t take a genius to know that the IRS has stacked the tax code with incentives for savers. Perhaps the biggest saver benefit being the tax-deductibility of retirement plan contributions, and allowing your retirement gains to be tax-deferred.
But there’s another little-known way the IRS is willing to pitch in. It’s called the Saver’s Credit. For those who qualify, this credit can result in a 10%, 20%, or even a 50% tax credit for your retirement plan contribution in 2018!
Got Kids? You Need to Know About These Income Tax Credits
Having children brings a whole host of concerns, especially for first-timers--like me. Is my child receiving enough emotional support? How do I know she’s eating enough? Is it okay for her to cry herself to sleep? What type of diapers should I use?
In addition, financial concerns quickly become a reality as well. The cost of another mouth to feed, future college expenses. Fortunately, our tax system is set up in such a way that incentivizes socially beneficial activities--like having kids.
To the taxpayer, this means something extra special--TAX CREDITS--which are very different and typically more financially advantageous than tax deductions.