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If you make contributions to your employer’s plan or an IRA,* you may be eligible for a tax credit of up to $1,000. Known as the “Saver’s Credit,” this could reduce the income tax you pay dollar for dollar.
How the Saver’s Credit Works
The credit rate can be from 10–50 percent of your annual contribution, depending on your adjusted gross income. The lower your income, the higher the credit rate. The credit rate also depends on your filing status. See the table below to determine your credit rate.
The maximum contribution taken into account for an individual’s credit is $2,000. If you are married filing jointly, the maximum contribution taken into account is $2,000 each for you and your spouse. […]
