Did You Know the Government Might Pay You to Save Money?
The IRS knows that it's important for people to save money for retirement, and it also knows that saving can be a challenge -- especially for families with relatively low incomes. For that reason, the agency offers a tax credit for retirement savers who meet certain criteria.
Officially known as the Retirement Savings Contributions Credit, the Saver's Credit is a tax credit that you can claim on your federal income tax return. Tax credits are even more valuable than deductions, since you subtract a credit from your tax due (with deductions, you subtract the deduction from your income for the year, so they don't lower your tax bill as much as credits do).
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Source: Fool.com
