Some retirement savers can still get a ‘special tax credit,’ IRS says — but most don’t claim it
Article Excerpt: "There’s still time for some tax filers to qualify for a tax break known as the retirement saver’s credit, or saver’s credit, for 2023 taxes. ...Despite the incentive, only 5.7% of taxpayers claimed the saver’s credit for tax year 2021, according to IRS estimates. ...Despite the incentive, only 5.7% of taxpayers claimed the saver’s credit for tax year 2021, according to IRS estimates. There are a few reasons for the slim percentage, experts say.
Millions of low-earning Americans have little or no tax burden, and the saver’s credit isn’t refundable, meaning you can’t get the credit without owing on your taxes.
“If you don’t have much of a tax burden, or any tax liability at all, the value of the credit is extremely limited or potentially zero"
Resource: www.cnbc.com