Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have a question about the savers credit, available to us making under 25,000 (single) but still able to contribute to a retirement account. I've read that it can only be used to reduce what you owe, & won't add any if you are getting a refund. does that mean I need to adjust my w4 to make sure I owe money at the end of the year to be eligble? if correct, that seems ridiculusly difficult. thanks

The saver's credit is non-refundable. This means that it can be used to reduce your tax liability (not what you owe at the end of the year). If your tax liability is reduced "below" $0, you don't get the excess refunded to you. The key number you are looking at is line 55 (2002 Form 1040), not line 73.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.