Signup to receive email updates
Authors
Recent Posts
Categories
- #TBT
- Apps
- Author
- Kathy Sweedler
- Karen Chan
- Kimberly Nute-Jones
- Paul McNamara
- Jennifer Hunt
- Guest Authors
- Pam Atkinson
- Sasha Grabenstetter
- Camaya Wallace Bechard
- Banking
- Budgeting
- Credit and Debt
- Credit Report
- Electronic Security/ Identity Theft
- Estate Planning
- Events
- Financial Exploitation
- Going Green
- Health Care
- Holiday Spending
- Home Ownership
- How to Choose/Purchase a ...
- Income Taxes
- Insurance
- Investing
- Job Loss
- Kids and Money
- Online Banking
- Organizing Finances
- Paying for College
- Podcasts
- Reduce Spending
- Retirement Planning
- Saving Money
- Shopping
- U. S. & Global Economy
Links
- SUBSCRIBE to the Plan Well, Retire Well E-Newsletter
- Choosing a Financial Professional
- More for Your Money: Using Your Money Wisely
- Long-Term Care: Talking, Deciding, Taking Action
- Dealing with Clutter
- Reference to specific external websites, products, companies or trade names does not imply endorsement by University of Illinois Extension, nor is discrimination intended against any that are not listed.
Blog Archives
- February 2019 (2)
- January 2019 (3)
- December 2018 (3)
- November 2018 (4)
- September 2018 (4)
- August 2018 (3)
- July 2018 (4)
- June 2018 (4)
- May 2018 (1)
- April 2018 (2)
- March 2018 (3)
- February 2018 (3)
- January 2018 (3)
- December 2017 (2)
- November 2017 (3)
- October 2017 (2)
- September 2017 (4)
- August 2017 (2)
- July 2017 (3)
- June 2017 (3)
- May 2017 (2)
- April 2017 (3)
- March 2017 (2)
- February 2017 (5)
- January 2017 (3)
- December 2016 (4)
- November 2016 (3)
- October 2016 (4)
- September 2016 (2)
- August 2016 (3)
- July 2016 (5)
- June 2016 (2)
- May 2016 (6)
- April 2016 (2)
- March 2016 (3)
- February 2016 (8)
- January 2016 (5)
- December 2015 (3)
- November 2015 (6)
- October 2015 (4)
- September 2015 (3)
- August 2015 (6)
- July 2015 (4)
- June 2015 (5)
- May 2015 (4)
- April 2015 (5)
- March 2015 (5)
- February 2015 (8)
- January 2015 (4)
- December 2014 (4)
- November 2014 (6)
- October 2014 (3)
- September 2014 (4)
- August 2014 (5)
- July 2014 (5)
- June 2014 (5)
- May 2014 (5)
- April 2014 (3)
- March 2014 (4)
- February 2014 (5)
- January 2014 (6)
- December 2013 (5)
- November 2013 (5)
- October 2013 (5)
- September 2013 (5)
- August 2013 (4)
- July 2013 (5)
- June 2013 (4)
- May 2013 (5)
- April 2013 (3)
- March 2013 (5)
- February 2013 (3)
- January 2013 (2)
- December 2012 (3)
- November 2012 (3)
- October 2012 (4)
- September 2012 (3)
- August 2012 (5)
- July 2012 (4)
- June 2012 (5)
- May 2012 (3)
- April 2012 (3)
- March 2012 (4)
- February 2012 (5)
- January 2012 (3)
- December 2011 (5)
- November 2011 (3)
- October 2011 (4)
- September 2011 (4)
- August 2011 (4)
- July 2011 (5)
- June 2011 (3)
- May 2011 (3)
- April 2011 (4)
- March 2011 (5)
- February 2011 (14)
- January 2011 (5)
- December 2010 (4)
- November 2010 (4)
- October 2010 (4)
- September 2010 (2)
- August 2010 (4)
- July 2010 (4)
- June 2010 (4)
- May 2010 (3)
- April 2010 (6)
- March 2010 (5)
- February 2010 (4)
- January 2010 (4)
- December 2009 (2)
- November 2009 (4)
- October 2009 (4)
- September 2009 (3)
- August 2009 (4)
- July 2009 (6)
- June 2009 (4)
- May 2009 (2)
- April 2009 (3)
- March 2009 (3)
- February 2009 (4)
- January 2009 (4)
- December 2008 (4)
- November 2008 (3)
- October 2008 (6)
- September 2008 (5)
- August 2008 (5)
- July 2008 (5)
- June 2008 (4)
- May 2008 (5)
- April 2008 (4)
- March 2008 (4)
- February 2008 (4)
- January 2008 (5)
532 Total Posts
follow our RSS feed

Friday, February 27, 2015
Tax Time is a Time to Build Your Savings
Finding money in a tight budget to put towards savings is challenging. However, tax time may provide an opportunity to kick-off that saving goal! The first step is to check if you are eligible for any tax credits.
The Earned Income Credit is designed for people who worked part-time or full-time in 2014 and had earned income less than about $48,000. The amount you can receive from this credit depends on your income and the number of children you have (although you can still receive some credit without children). You could qualify for as much as $6,143. This credit first will go towards paying any taxes you owe. However, the remainder will go to you and this is money you can immediately put towards your saving goal!
If you have children, you may also qualify for the Child Tax Credit. To learn more about these credits, go to www.irs.gov and search for EIC or Child Tax Credit. Don't pass up these tax credits you've earned; fill out the correct tax forms so that you receive the refunds.
Often when people file their taxes, they receive money due to overpayment during the year. An opportunity to save this money! If you don't have emergency savings set aside for unexpected expenses, now is the time to open a savings account. Emergency savings provide peace-of-mind and are very helpful when needed. Plus, it's a much cheaper way to fund repairs or take advantage of opportunities than using a credit card with interest costs.
If you already have a savings account, then consider investing for your retirement. Contributing to a retirement plan can have tax-advantages. For example, if you open an IRA-account, you may not pay income taxes on the amount you deposit in that account. (That's money saved.) However, for contributions to a traditional IRA, the amount you can deduct from your income may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels. Check with a tax or other financial professional to determine which type of retirement plan is best suited to you.If you add money to a retirement savings plan and if your income is less than $45,000 ($60,000 for married couples), then you may qualify for the Saver's Credit. The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income. You have until April 15, 2015, to set up a new IRA or add money to an existing IRA for 2014.
Two more financial tips: first, split your tax refund (using Form 8888) with direct deposits into two or three accounts. This way you start your savings account or IRA and still receive some refund for spending now.
Second, save money by filing electronically for a low-cost or free. Go to Free-File: Do Your Federal Taxes for Free and file your federal taxes for free if your income is under $60,000. This is secure and safe, and gives you more money to put towards your savings goal!
Approach this year's tax season with the intent to start or increase your saving accounts. Think about your financial goals and create a saving goal at America Saves; you'll receive educational resources to keep you working towards your goal throughout 2015.