Are you eligible to claim the IRS saver’s credit?

NAPSI -— Here’s good news, for a change, from the IRS: It offers an incentive to lower your tax bill when you save for retirement. With pandemic-related employment disruptions last year, more taxpayers may be eligible to claim the Saver’s Credit but may not even know this tax credit exists. Also referred to as the Retirement Savings Contributions Credit, the Saver’s Credit can reduce federal income taxes for eligible taxpayers who save for retirement through a qualified retirement plan, such as a 401(k) or an Individual Retirement Account (IRA). 

The 22nd Annual Transamerica Retirement Survey finds that fewer than half (48 percent) of workers are aware of the Saver’s Credit. 

"People who are saving for retirement may be able to claim the Saver’s Credit and reduce their federal taxes," says Catherine Collinson, CEO and president of nonprofit Transamerica Institute and its Center for Retirement Studies. "Perhaps people are confusing the tax credit with the tax-advantage treatment of retirement accounts. The idea of a double tax benefit may sound too good to be true but both are available to retirement savers."

What Is the Saver’s Credit? 

The Retirement Savings Contributions Credit is a non-refundable tax credit for contributions an eligible taxpayer makes to a 401(k), 403(b) or similar employer-sponsored retirement plan, a traditional or Roth IRA or an ABLE account. In this context, "non-refundable" means the credit cannot exceed a person’s federal income tax for the year. The maximum credit is $1,000 for single filers or individuals and $2,000 for married couples filing jointly. 


Tips for claiming the Saver’s Credit

1.Check Your Eligibility

To be eligible, the maximum Adjusted Gross Income (AGI) for single filers is $33,000 in 2021 and $34,000 in 2022. For the head of a household, the AGI maximum is $49,500 in 2021 and $51,000 in 2022. For those who are married filing jointly, the AGI maximum is $66,000 in 2021 and $68,000 in 2022.

You must be 18 years or older by January 1 and cannot be a full-time student or be claimed as a dependent on another person’s tax return. Consider using the IRS’s online tool to help determine if you are eligible for the Saver’s Credit.

2.Save for Retirement

To claim the Saver’s Credit for 2021, you must have contributed to a 401(k), a 403(b), a similar employer-sponsored retirement plan or an ABLE account during 2021. Contributions to traditional or Roth IRAs are also eligible and you have until April 18, 2022 to make an IRA contribution for tax year 2021. Roll-over contributions are not eligible for the credit.

3.File Your Tax Return and Claim the Saver’s Credit

Let the IRS help you file your federal taxes with its Free File program. The program’s eight partners offer online tax preparation tools free to taxpayers with an AGI of $73,000 or less. More at www.irs.gov/FreeFile

•When using an online tax preparation tool, be sure to answer questions about the Saver’s Credit, also referred to by the IRS as the Retirement Savings Contributions Credit and Credit for Qualified Retirement Savings Contributions.

•If you prepare your tax return manually, complete Form 8880, Credit for Qualified Retirement Savings Contributions, to determine your exact credit rate and amount. Then transfer the amount to line 4 on Schedule 3, which is used with Forms 1040, 1040-SR, and 1040-NR. 

•If you use a professional tax preparer, be sure to ask about the Saver’s Credit.

"Consistently saving for retirement is fundamental to helping achieve financial security in retirement,” says Collinson. “Another way to help boost your retirement savings is to directly deposit any tax refund into an IRA. Saving more now could help you reap more later."

Remember, this important tax credit may help reduce what you owe in federal taxes or increase your refund. Check your eligibility, particularly if you had pandemic-related employment impacts in 2021. Help spread the word about the Saver’s Credit by telling family, friends, and colleagues.

Learn More

For more details and resources on the Saver’s Credit in English and Spanish, visit Transamerica Institute at www.transamericainstitute.org/SaversCredit or the IRS at www.irs.gov

5 ways for your pet to have a spooky, safe Halloween

by Darris Cooper, CPDT-KA

(NAPS) — It's no secret that pets are like family—holiday traditions included. This Halloween bring your pups in on the spooky fun by decking them out in a scary cute costume and training them to be the most polite trick-or-treater on the block.From fun costumes to virtual and in-person dog training, Petco has everything a pet parent needs to make Halloween a howling good time for the whole family.

Photo provided

Whether your family is planning to trick-or-treat or celebrate at home, here are five surefire ways to help prep your pet:

• Plan Your Pet's Look: Petco’'s latest "Bootique" collection features an array of ready-to-wear Halloween apparel, accessories, matching costumes and more. Dogs can play a different role in the animal kingdom as a shark or cow or even twin with their human as tigers. From easy-on options to full-body costumes, the "Bootique" is full of costumes designed with care so all types of pets and preferences can find their match.

• Take Precautions: Once the whole pack has picked their costumes, have a pre-Halloween dress rehearsal so your pup can get used to the outfit and accustomed to everyone else’s.

Before any festivities begin, triple-check your pet's costume for any hazardous materials that could be chewed or cause choking. To stay safe after sundown, every Halloween look should also include reflective gear and proper pet identification.

• Learn the Training Basics: Basic skills such as "sit" and "stay" can make all the difference for dogs when it comes to safely interacting with trick-or-treaters and helping your pet navigate the Halloween commotion. "Drop it" or "leave it" are additional key training cues in case your curious pup sniffs or picks up any human treats—such as chocolate—that could be toxic to dogs. Preemptive Petco positive dog training can be helpful to teach your pet proper Halloween etiquette and keep the holiday fun for all.

• Offer Treats in Moderation: Although it's tempting to indulge pets around the holidays, it’s important to remember that no more than 10% of a pet’s daily calorie intake should be from treats. Help keep pets energized for the Halloween festivities by giving them protein-packed treats, such as Wholehearted stick treats for dogs or new freeze-dried treats for cats, or find other ways to celebrate the season with them through fun seasonal toys such as a plush pumpkin spice latte or rope toy. To help keep pets feeling their best year-round, give them the ultimate treat of Vital Care for just $19 a month to enjoy savings on grooming, vet exams and more.

• Create a Spook-Free Safe Haven: Between constant doorbell rings, unknown trick-or-treaters and spooky costumes, Halloween festivities can add to pets’ anxiety. The best way to help your pet is by learning to identify their anxious behavior and which calming tactics work best for them. Petco offers an array of calming aids, chews or oil diffusers to help keep pets at ease. Background noise from either music or the TV can help drown out unusual sounds, but it's also a good idea to give pets a quiet room away from the action.For more tips on how to safely celebrate Halloween with the whole family—cats, bearded dragons, and guinea pigs included—check out a Petco pet care center or petco.com/halloween.


About the author - Darris Cooper, CPDT-KA, is the National Dog Training Manager at Petco. He has worked in the industries of animal training and behavior, pet lifestyle and broadcast journalism, and has been a professional dog trainer for more than 10 years.

Are you ready for when your power goes out?

With people still working, learning and shopping from home, everyone must prepare earlier for outages that accompany severe weather.

(NAPSI) -- More Americans suffered extended power outages in 2020 than any year since Superstorm Sandy struck the New York area in 2012, according to Generac, owners of Power Outage Central, a real-time outage tracking service that monitors outages throughout the United States.

Earlier this month, there were three areas in Champaign-Urbana without electrical service thanks to a set of Mylar birthday balloons that came in contact with power lines.

Photo: Artem Podrez/Pexels

Mylar balloons are metallic and conduct electricity, resulting in surges and shorts that can create power outages, start fires, and cause significant damage to the electric grid. Approximately 1,200 Ameren customers were without power for three hours.

Back in November of last year, power was out for about three hours in the south part of Champaign and another area covering Campustown. In eastern Urbana, about 180 customers were without power at the same time. Over 1,500 customers were without power during the incident.

"In 2020, more than one out of three Americans experienced a power outage, and the U.S. power grid suffered more outage hours than it has in years," said Russ Minick, chief marketing officer for Wisconsin-based Generac. "With people still working, learning and shopping from home, everyone must prepare earlier for outages that accompany severe weather."

Outages are statistically much more common than many other threats to the home, according to Generac’s data. In fact, while about 12% of homes are at risk of flooding according to the First Street Foundation’s flood database1, every home is at risk of losing power. Unlike with floods, however, there are multiple ways to safeguard against loss of electrical power.

"There are three key paths to protecting power supply, said Simon Allen, president of Allied Energy, a backup power solution provider in San Diego, Calif. "These include portable generators, which are a short-term solution; home standby generators; and solar energy storage systems. Solar energy storage systems and home standby generators are permanently installed and can provide secure sources of power for longer periods."

Each system requires advance planning, including local permitting and installation, said Allen, but secure power is worth it.

"Life gets very primitive and dangerous when the power is out. With outages lasting longer and occurring more often, all against the backdrop of people working and learning from home, our customers are turning to Generac home standby generators and PWRcell battery storage systems. Effectively, they’re making their homes a sanctuary against Mother Nature’s threats."

Picking the correct solution varies for every homeowner, said Stephen Cruise of Generator Supercenter, a Texas-based provider of power solutions. "A generator will run nearly indefinitely on propane or natural gas," he said. "With correct power management, a solar energy storage system can also power the whole home for extended periods. It comes down to preference, local codes and budget. The best place to start is finding a great local installer who can help make the decision easy."

"Authorized dealers and installers know local codes and are factory trained," said Minick. "They’re experts in local needs and can provide a one-stop solution for every homeowner."

All the resources needed to acquire and install backup power are available at www.generac.com. Prices fit most budgets and vary depending on factors such as the size of home, the electricity needed for backup and preference for solar or generator-based options.


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