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 |
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