Grad Student Tax Lie #10: You have a low income, so you should claim the Saver’s credit.

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The Saver’s credit is an incentive program for low-income people to save for retirement. Basically, if you contribute money to a retirement account and your adjusted gross income is below a certain threshold ($30,500 for single filers $61,000 for married filing jointly filers), you can receive a tax credit. The credit is worth between 10 and 50% of your contribution (the less you make, the higher the percentage) up to $2,000!

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If you are a grad student and contributing to an individual retirement arrangement, you are a rock star. You should be able to take advantage of this awesome credit – but you can’t. One of the three exclusion criteria for the Saver’s credit is being a full-time student (p. 47 of Publication 590A).

We at Grad Student Finances are not tax professionals, and none of the content in this section should be taken as advice for tax purposes.

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