Save on Your Taxes and for Retirement with the Saver’s Credit

If you contribute to a retirement plan, like a 401(k) or an IRA, you may be able to claim the Saver’s Credit. This credit can help you save for retirement and reduce the tax you owe. Here are some key facts that you should know about this important tax credit:

• Formal Name.  The formal name of the Saver’s Credit is the Retirement Savings Contribution Credit. The Saver’s Credit is in addition to other tax savings you get if you set aside money for retirement. For example, you may also be able to deduct your contributions to a traditional IRA.
• Maximum Credit.  The Saver’s Credit is worth up to $4,000 if you are married and file a joint return. The credit is worth up to $2,000 if you are single. The credit you receive is often much less than the maximum. This is partly because of the deductions and other credits you may claim.
• Income Limits.  You may be able to claim the credit depending on your filing status and the amount of your yearly income. You may be eligible for the credit on your 2015 tax return if you are:
• Married filing jointly with income up to $61,000
• Head of household with income up to $45,750
• Married filing separately or a single taxpayer with income up to $30,500
• Other Rules.  Other 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 2015.
• No other person can claim you as a dependent on their tax return.
• Contribution Date.  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 2015. The due date for most people is April 18, 2016.
• Form 8880.  File Form 8880, Credit for Qualified Retirement Savings Contributions, to claim the credit.
• Free File.  If you can claim the credit, you can prepare and e-file your tax return for free using IRS Free File. The tax software will do the hard work for you. It will do the math and complete the right forms. Free File is available only through the IRS.gov website.

Use the Interactive Tax Assistant interview tool to help you determine if you qualify to claim the Retirement Savings Contributions Credit.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.

It's a New Year - Get off to a better start - TODAY!

Whether you're the head of a small business or a small family, you'll benefit from letting an accounting professional handle your taxes and other financial responsibilities.

For many years, Accutax Acounting Services, LLC. has been helping individuals and businesses in the community prepare their taxes, manage their finances, and plan for the future.

Our friendly service makes the process less stressful and easier to understand, and our experience and knowledge ensure that we're always up to date on the latest changes to tax laws and financial regulations. Our fees are reasonable, especially compared to the amount we can help you save in the long term.

AS THE HOLIDAYS APPROACH

It's that time again to get all your end of the year documents in order.  Don't forget to include those charitable contributions along with medical and travel expenses.

If you are a business owner, keep every receipt you received for purchasing business items.
  
I know this time can be hectic with planning for the holidays and getting together with friends and family, but don't let that keep you from being on track.


When in doubt contact you accountant to assure what you're doing it right.

Four Things to Know about Advance Payments of the Premium Tax Credit

When you enroll in coverage through the Marketplace during Open Season, which runs through Jan. 31, 2016, you can choose to have monthly advance credit payments sent directly to your insurer. If you get the benefit of advance credit payments in any amount, or if you plan to claim the premium tax credit, you must file a federal income tax return and use a Form 8962, Premium Tax Credit (PTC) to reconcile the amount of advance credit payments made on your behalf with the amount of your actual premium tax credit.  You must file an income tax return for this purpose even if you are otherwise not required to file a return.

Here are four things to know about advance payments of the premium tax credit:

• If the premium tax credit computed on your return is more than the advance credit payments made on your behalf during the year, the difference will increase your refund or lower the amount of tax you owe. This will be reported in the ‘Payments’ section of Form 1040.

• If the advance credit payments are more than the amount of the premium tax credit you are allowed, you will add all or a portion of the excess advance credit payments made on your behalf to your tax liability by entering it in the ‘Tax and Credits’ section of your tax return.  This will result in either a smaller refund or a larger balance due.

• If advance credit payments are made on behalf of you or an individual in your family, and you do not file a tax return, you will not be eligible for advance credit payments or cost-sharing reductions to help pay for your Marketplace health insurance coverage in future years.   • The amount of excess advance credit payments that you are required to repay may be limited based on your household income and filing status.  If your household income is 400 percent or more of the applicable federal poverty line, you will have to repay all of the advance credit payments. The repayment limits are listed in the table below.  

Repayment Limitation Table
Household Income Percentage of Federal Poverty Line	Limitation Amount for Single	Limitation Amount for all other filing statuses
Less than 200%	$300	$600
At least 200%, but less than 300%	$750	$1,500
At least 300%, but less than 400%	$1,250	$2,500
400% or more	No limit	No limit

For more information, see the Premium Tax Credit Questions and Answers at IRS.gov/aca. You can also use our Interactive Tax Assistant tool to find out if you are eligible for the premium tax credit.

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