Syracuse (WSYR-TV) -- Tax time is nearly upon us and there are ways to save that you might not be aware of. The first has to do with something called “The Saver's Credit,” which is designed to encourage retirement savings amongst low and moderate income workers. It can be applied up to the first $2,000 of contributions made to employer-sponsored 401K plans or IRAs.
To be eligible for the tax credit you must meet certain criteria, including:
- You must be 18 years old or older
- Married couples filing jointly must have a combined income of up to $56,500
- Heads of households must have an income of up to $42,375
- And married individuals filing separately and singles must have an income of up to $28,250
If you’re claimed as a dependent on someone else’s return or you’re a student, you’re not eligible.
There are also some surprising deductions that might save you a little money when it comes time to file. Here are the top five,
according to ABC News:
Taking care of stray animals: If you’re housing cats, dogs or other furry friends, keep your receipts and ask the shelter you’re working with to write a letter, explaining how your spending is helping their work.
Job Hunting: You may be reimbursed for mailing applications, placing telephone calls and traveling. This only applies if you’re looking for a new job in the same field.
Relocating for a new job: If you’re relocating for a new job, you may be able to deduct those expenses. The position must be 50 miles from your old home and you have to be working full time for at least 10 months during the first year of your arrival.
Home improvements: Updating your home could get you a 100 percent tax credit on projects up to $500. The key is to make energy saving updates.
And finally, contact lenses: This one is a little tricky. The contacts must be for medical reasons and the cost of them has to exceed seven percent of your adjusted gross income.
CLICK HERE to learn more about the Savers Credit and more from the IRS.
