3.11_blog Claim IRA Contributions on Your 2021 Return
03 / 11 / 22

Claim IRA Contributions on Your 2021 Return

 

If you make contributions to your Individual Retirement Arrangement (IRA) up until April 18, 2022, it can be claimed for a deduction on your 2021 tax return.

An IRA is a personal savings plan that allows employees to set aside money for retirement while getting tax benefits. Taxpayers can contribute up to $6,000 to an IRA generally. If they are over the age of 50, they can contribute up to $7,000 annually.

Contributions for 2021 can be made to either a traditional or Roth IRA until the filing due date of April 18th. If you are going to contribute to your IRA before the filing due date, make sure to designate with your financial institution that it is for the 2021 tax year.

If you make contributions to certain employer retirement plans, like a 401k or 403(b), and IRA, or an ABLE account, you may be able to claim the “Saver’s Credit.” This is also known as the Retirement Savings Contribution Credit and the amount of the credit is dependent on both the amount of the contribution and the adjusted gross income of the taxpayer. The lower a taxpayer’s income, the higher the amount of the tax credit they will receive. Those who do not qualify for the tax credit are dependents and full-time students.

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