Rewarding Tax-Time Savings Through Existing Law

My new column at Center for American Progress proposes executive actions that would make it easier for low-income households to save for retirement at tax time. New legislation would be ideal, but if Congress remains gridlocked there is still progress to make:

[T]he Internal Revenue Service, or IRS, could make it easier for households to claim the Saver’s Credit by directing a portion of their tax refund into retirement accounts—a step that is already legal and would simply require one additional line on the Saver’s Credit tax form and clear guidance from the IRS. This would give struggling families an immediate, tangible benefit from retirement savings around tax time, which is the very moment when they have resources to set money aside.

From my experience as a tax preparer with the Volunteer Income Tax Assistance program, I see this as a small change with the potential to help a lot of low-income taxpayers. Read the full column here.


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