Divorced Couples Might Lose Out on the Saver’s Credit
Low- to moderate-income taxpayers can take advantage of the Saver’s credit, a tax credit for contributing to a retirement account, such as a 401k or IRA. The credit is worth up to $4,000 for married couples filing jointly.
To qualify, married couples filing jointly need an adjusted gross income of $62,000 or less for 2016 returns. For single taxpayers, the income limit is $31,000 or less. Being married doubles the maximum income you can have to qualify. If you were the sole income earner while married, you might exceed the limit if you get divorced — and lose out on this tax break.