New Limits for Saver's Credit

New Limits for Saver's Credit


More participants may be able to take advantage of a nonrefundable tax credit on their federal tax return for investing in Ohio Deferred Compensation. Depending on your situation, this credit could be as much as a 50 percent tax credit on the first $2,000 deferred. The saver's credit amount is based on your filing status, adjusted gross income, tax liability, and amount contributed to qualifying retirement programs.

The saver's credit is now indexed and can be claimed by:
  • Married couples filing jointly with incomes up to $53,000 in 2008 or $55,000 in 2009
  • Heads of household with incomes up to $39,750 in 2008 or $41,625 in 2009
  • Married individuals filing separately and singles with incomes up to $26,500 in 2008 or $27,750 in 2009
If you are eligible, use IRS Form 8880 to claim the saver's credit on your 2008 return. The instructions have details on figuring the credit correctly. If you will be eligible on your 2009 return, contact us now to ensure that you defer enough throughout the year to take full advantage of this valuable incentive to save for retirement.

Neither Ohio Deferred Compensation nor any of its representatives will give legal or tax advice. For such guidance, consult your personal legal or tax advisors.