By: Davette Lynne Hrabak, CPA, CFE, CBM, ATA, ATP, ABA, ECS, CGMA, https://www.DavetteLynneHrabak.com
“When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”
Whether you are saving for retirement or retired, there is important information you need to know for the preparation of your taxes.
2023 TAX YEAR RETIREMENT SAVER’S CREDIT
The Retirement Saver’s Credit is available in 2023 to various taxpayers who fit into the proper criteria and who make eligible contributions. It is a non-refundable credit which allows for a taxpayer to receive a non-refundable credit of up to $2,000 for a Married Filing Jointly Tax Status and up to $1,000 for a Single or other filing Tax Filing Status.
Many taxpayers are surprised to learn that they have contributions that count for this credit.
Qualifying taxpayers must be at least 18 years old by the end of the year, not be claimed as a dependent on another taxpayer’s tax return, and cannot be a full-time student.
The Retirement Saver’s Credit is also subject to phase-outs, which vary depending on a taxpayer’s filing status and Adjusted Gross Income amounts. If a taxpayer lands in the proper range, then the taxpayer would be eligible to receive from 10 to 50 percent of their contributions back up to a maximum allowed by their filing status.
There are also rules on eligible contributions and some reductions of some eligible contributions, but, overall, many taxpayers are able to use this credit.
Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.
When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience, and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
2023 TAX YEAR TIP: QUICK RETIREMENT TAX FACTS
Each year the IRS releases and revises various limits for various retirement type accounts, some of which are listed below:
IRA Contribution Limits:
Under Age 50: $6,500
Age 50 or Older: $7,500
Elective Deferral Limits On:
Simple IRA Plan:
Under Age 50: $15,500
Age 50 or Older: $19,000
401(K), 403(B), and 457 Plans:
Under Age 50: $22,500
Age 50 or Older: $30,000
Profit-Sharing Plan/SEP:
Contribution Limit: $66,000
Compensation Limit: $330,000 (for computing employer contributions)
Each person’s tax situation is unique. There are a variety of plans out there; the above list is not all inclusive but provides some information on some of the most common ones. Each person’s tax situation must be looked at on a case-by-case basis for each taxpayer; rarely are any two taxpayers’ situations identical.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
![[Image: davettelynnehrabakcpa.jpg]](https://www.mynorthernwisconsin.com/display/davettelynnehrabakcpa.jpg)
“When it comes to taxes, save the lion’s share; enter between the lions to get this special care.”
Whether you are saving for retirement or retired, there is important information you need to know for the preparation of your taxes.
2023 TAX YEAR RETIREMENT SAVER’S CREDIT
The Retirement Saver’s Credit is available in 2023 to various taxpayers who fit into the proper criteria and who make eligible contributions. It is a non-refundable credit which allows for a taxpayer to receive a non-refundable credit of up to $2,000 for a Married Filing Jointly Tax Status and up to $1,000 for a Single or other filing Tax Filing Status.
Many taxpayers are surprised to learn that they have contributions that count for this credit.
Qualifying taxpayers must be at least 18 years old by the end of the year, not be claimed as a dependent on another taxpayer’s tax return, and cannot be a full-time student.
The Retirement Saver’s Credit is also subject to phase-outs, which vary depending on a taxpayer’s filing status and Adjusted Gross Income amounts. If a taxpayer lands in the proper range, then the taxpayer would be eligible to receive from 10 to 50 percent of their contributions back up to a maximum allowed by their filing status.
There are also rules on eligible contributions and some reductions of some eligible contributions, but, overall, many taxpayers are able to use this credit.
Remember, if you have already filed but realize that you could have had a credit or deduction that you missed, it is not too late; you can always amend your return. If you need more information or believe you could qualify for them, I would be happy to give you a free quote on the preparation of your return.
When the right tax and financial advice is essential, talk to someone with an unmatched level of knowledge, experience, and education. A CPA understands the business of taxes and finance and can provide trusted advice and services during the tax season and throughout the calendar year.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.
2023 TAX YEAR TIP: QUICK RETIREMENT TAX FACTS
Each year the IRS releases and revises various limits for various retirement type accounts, some of which are listed below:
IRA Contribution Limits:
Under Age 50: $6,500
Age 50 or Older: $7,500
Elective Deferral Limits On:
Simple IRA Plan:
Under Age 50: $15,500
Age 50 or Older: $19,000
401(K), 403(B), and 457 Plans:
Under Age 50: $22,500
Age 50 or Older: $30,000
Profit-Sharing Plan/SEP:
Contribution Limit: $66,000
Compensation Limit: $330,000 (for computing employer contributions)
Each person’s tax situation is unique. There are a variety of plans out there; the above list is not all inclusive but provides some information on some of the most common ones. Each person’s tax situation must be looked at on a case-by-case basis for each taxpayer; rarely are any two taxpayers’ situations identical.
For a free, no obligation quote, call Davette at 715-339-6638. Her office is located between the lion statues at 164 South Lake Avenue in Phillips.