[cripplecreek]

There’s a vanity tax?

[bamagirl1944]

I don’t think the Roth IRA saves you tax up front. I know the older type does, however.

[lacrew]

I think its line 50....there are income limits, but I assume your accountant knows where you stand with those.

[rightly_dividing]

Vanities are not taxed currently, but after ObamaCare kicks in full in 2014, who knows?

[Raycpa]

Although a Roth does not lower your taxable income it does qualify for credit

http://www.irs.gov/newsroom/article/0,,id=107686,00.html

However, it needs to be done today.

[Lurking Libertarian]

1) What are the odds that the figure on line 54 (Total Credits) of your 1040 is going to be the exact same number as that on line 62 (Federal Income Tax Withheld)? Wouldn't that be one heck of a coincidence, if true? Should I start playing the lottery?

"Total credits" means everything you have already paid toward this year's taxes. It will always be the same as your withholdings unless you also made estimated payments.

[ThomasThomas]

Vanity tax? Tax a person at a rate based on how smart they think they are. It would be fair because the smarter you are the more money you should be able to make. Obama and friends would up around 90%

[P.O.E.]

Unless you are a farmer or fisherman or subject to look-back tax or railroad pension exclusion.

[Skepolitic]

Many tax credits are limited to the amount of tax.

I suspect you file 1040A. Depending upon both taxable income on line 27 and tax on line 28, a credit for a Roth IRA can be taken on line 32. A single filer gets a 50% credit if line 27 income is less than $17000. The credit percentages phase out to zero at $28250 of taxable income. In all cases the credit cannot exceed the tax on line 28 of 1040A. See Form 8880 for details.

[Krankor]

Um...what’s his email address. I got a couple of questions, too.