You may be entitled to a saver’s tax credit if you make eligible contributions to an IRA or a work retirement plan. You have until April 15th of the current year to make the contribution.
Per the IRS, below are the specifications of the credits:
Eligibility:
- Individual is 18 or older
- Individual is not claimed as a dependent in someone else’s return
- Individual is not a student
Credit Amount:
- The maximum contribution amount is $2,000 ($4,000 if married filing jointly). This makes the credit $1,000 ($2,000 if married filing jointly)
- Credit is dependent upon your adjusted gross income (AGI) reported on 1040 (see table below), the credit will be 50%, 20%, 10% of:
- Contributions to a traditional or Roth IRA
- Contributions to 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan through salary deferral
- Employee contributions made after-tax to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan
- Contributions to a 501(c) (18)(D) plan
- Contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018)
- Contributions that don’t qualify
- Rollover contributions
- Eligible contributions can be reduced by distribution made from a retirement plan, IRA, or from an ABLE account
Saver’s Credit Table
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
| 50% of your contribution | AGI not more than $43,500 | AGI not more than $32,625 | AGI not more than $21,750 |
| 20% of your contribution | $43,501 – $47,500 | $32,626 – $35,625 | $21,751 – $23,750 |
| 10% of your contribution | $47,501 – $73,000 | $35,626 – $54,750 | $23,751 – $36,500 |
| 0% of your contribution | More than $73,000 | More than $54,750 | More than $36,500 |
*Single, married filing separately, or qualifying widow(er)
Source: IRS.gov |
Need Help Filing Your Return?
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- Call: 800-829-1040
- 7 am to 7 pm local time
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Mindful Reminder
If you have opted to do your tax return, remember to be patient as it’s challenging to learn about tax laws. Give yourself ample time to process and review last year’s return as a guide. If you need help, visit IRS.gov. Implement a method to center yourself if you become anxious or stressed. When you are relaxed, you will find it much easier to understand and complete the return.
Seeking Help
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