Navient Corporation

Tax season is underway. This year’s income tax return is due on April 15. Many of you may have already filed your taxes or are in the process of filing them. You may have undergone some major life changes in the past year like being financially impacted from the coronavirus pandemic, moving for a new job, saving for retirement or education, or juggling a new business. Before you submit your tax return, you’ll want to consider if those lifestyle changes make you eligible for one of several credits or deductions. Individual Retirement Arrangements (IRAs) Contributed to a retirement fund? In general, contributions to a traditional IRA are tax deductible. For the 2020 tax year, the maximum contribution to an IRA is $6,000 for individuals younger than 50 or $7,000 for people age 50 or older. Typically, you must make these contributions prior to end of year, however, if your contributions are made before April 15, 2021 and are specifically designated as a contribution for the previous tax year, then you can take the deduction on your 2020 tax return. The rules can be a little tricky to navigate especially for those considered active participants in an employer retirement plan such as a 401(k). For more information on IRAs, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs). Saver’s Credit Contributing to a savings account is a healthy financial habit for people of all ages. The sooner you start, the better. The large majority (91%) of young adults between 22 and 35 are saving according to Money Under 35, a study conducted by Navient and the global market research company Ipsos. Thirty-three percent of them say they are saving for retirement. If you’re one of them, you can earn more savings when it’s tax time. So, here’s what you need to know: individual filers with an adjusted gross income of $32,500 or less can claim a credit of up to $1,000. While joint filers with an adjusted gross income of $65,000