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Ministers may be able to claim a substantial credit on their income taxes while contributing to their Nazarene 403(b) Retirement Savings Plan accounts.

The Saver’s Tax Credit enables a couple filing a joint return to earn up to $1,000 each just for contributing to a qualifying workplace savings program, such as the Nazarene 403(b) Retirement Savings Plan, if their income falls within certain ranges. The credit is in addition to the tax advantages already available through the plan. The maximum annual contribution amount on which the credit can be claimed is $2,000.

Among the eligibility requirements for the 2018 tax year, adjusted gross income (AGI) cannot be more than $63,000 for a married couple filing a joint return; $47,250 for an individual filing as head of household; or $31,500 for a single filer, married filing separately, or a qualifying widow(er).

Keep in mind that unlike a deduction, this tax credit reduces federal income taxes dollar for dollar.

Only voluntary contributions to a retirement account are eligible, so Annual Pension Supplements (APS) may not be included.

There are additional eligibility requirements that must be met. Details can be found on Form 8880, which is used to claim the credit.

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