The 4 Best Tax Breaks for Savers

If you regularly save money (whether for retirement or other purposes), you've made a smart financial choice. What's more, the government wants to reward responsible people like you by offering these four great tax breaks just for savers.

Contribute to a traditional IRA (not a Roth IRA) and you may be eligible for a fat tax deduction. If you're not covered by a workplace retirement plan such as a 401(k), you're automatically eligible to deduct your IRA contributions in full on your federal tax return (although you still can't exceed the annual contribution limit -- in 2017, that's $5,500 for everyone under 50).

If you are covered by a workplace retirement plan, your IRA deduction may be limited based on your annual income and tax filing status. If you file as single or head of household, you can take a full IRA deduction with an annual income of up to $62,000; a partial deduction if your income is between $62,000 and $72,000; and no deduction if your income is $72,000 or more. For married filing jointly, the income limits are $99,000 or less (full deduction), more than $99,000 but less than $119,000 (partial deduction), and $119,000 or more (no deduction).

Source: Fool.com