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Are there any tax incentives for low-income savers? |
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Yes. You may be eligible for an income tax credit of up to $1,000
just by contributing to your MNDCP account. It's called the Saver's Tax Credit.
The amount of the credit is determined by your tax filing status, your adjusted gross
income (AGI), and contributions to a qualifying retirement plan, like your MNDCP
account. You may count total contributions for tax year 2012 up to $2,000. Use
the chart below to determine the percentage of the allowable credit for 2012.
If you qualify, complete IRS Form 8880 and attach it to your federal tax return.
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AGI
Married Filing Jointly
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AGI
Head-of-Household
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AGI
Single
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Percent Credit
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$0 - $34,500 |
$0 - $25,875 |
$0 - $17,250 |
50% on first $2,000 |
$34,501 - $37,500 |
$25,876 - $28,125 |
$17,251 - $18,750 |
20% on first $2,000 |
$37,501 - $57,000 |
$28,126 - $43,125 |
$18,751 - $28,750 |
10% on first $2,000 |
$57,001 & over |
$43,126 & over |
$28,751 & over |
0% |
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