More tips to set aside money
n If you want to buy savings bonds with a tax refund directly, there are some restrictions. You cannot have your refund deposited into more than one account or buy paper Series I savings bonds if you file Form 8379, Injured Spouse Allocation. See IRS Form 8888, Allocation of Refund, for more details.
n Remember, you cannot cash in a new savings bond within 12 months after it is issued. Also, you would forfeit the three most recent months of interest if you cashed that savings bond within five years. There is no penalty if you cash the bond after five years.
n If interested in the Retirement Savings Contribution Credit or the Saver's Credit, remember the amount of the credit will vary based on the taxpayer's adjusted gross income and filing status. See Form 8880.
n The Retirement Savings Contribution Credit can have complicated rules so taxpayers may want to use tax software. The 2013 credit, for example, is reduced by certain retirement plan distributions received after 2010 and before the due date, including extensions, of the 2013 return.
n For the saver's retirement credit, retirement contributions can include traditional and Roth IRA contributions for 2013, as well as contributions made to a 401(k) or 403(b). But money that was rolled over from another IRA would not qualify for this credit.
-- Detroit Free Press research