Saver’s Credit for IRA Contributions. A credit of up to $1,000, or up to $2,000 if married filing jointly, may be available to certain taxpayers having a joint AGI of less than $65,000 in 2020, or $66,000 in 2021. The credit may also be available to certain taxpayers who are heads of household with an AGI of less than $48,750 in 2020, $49,500 in 2021, or married individuals filing separately and singles with an AGI less than $32,500 in 2020, or $33,000 in 2021. Some of the restrictions that apply include: • the individual must be at least 18; • not a full-time student; • not declared as a dependent on another taxpayer’s return; or • any distribution from most retirement plans (qualified and non-qualified) will decrease the eligible contribution.
Saver’s Credit for IRA Contributions. This tax credit was originally available for contributions made for taxable years beginning after December 31, 2001, and before January 1, 2007, under EGTRRA. The credit was made permanent under PPA. Also, as a result of PPA, the AGI limits which determine eligibility to receive the tax credit will now be subject to cost-of-living adjustments (COLA). For 2016: JOINT FILERS (AGI) HEADS OF HOUSEHOLDS (AGI) ALL OTHER FILERS (AGI) CREDIT RATE MAXIMUM CREDIT $0–$37,000 $0–$27,750 $0–$18,500 50% $1,000 $37,001–$40,000 $27,751–$30,000 $18,501–$20,000 20% $400 $40,001–$61,500 $30,001–$46,125 $20,001–$30,750 10% $200 Over $61,500 Over $46,125 Over $30,750 0% $0 For 2017: JOINT FILERS (AGI) HEADS OF HOUSEHOLDS (AGI) ALL OTHER FILERS (AGI) CREDIT RATE MAXIMUM CREDIT $0–$37,000 $0–$27,750 $0–$18,500 50% $1,000 $37,001–$40,000 $27,751–$30,000 $18,501–$20,000 20% $400 $40,001–$62,000 $30,001–$46,500 $20,001–$31,000 10% $200 Over $62,000 Over $46,500 Over $31,000 0% $0
Saver’s Credit for IRA Contributions. A credit of up to $1,000, or up to $2,000 if married filed jointly, may be available to certain taxpayers having a joint AGI of less than $60,000. The credit may also be available to certain taxpayers who are heads of household with an AGI of less than $45,000 or married individuals filing separately and singles with an AGI less than $30,000. Some of the restrictions that apply include: • the individual must be at least 18; • not a full-time student; • not declared as a dependent on another taxpayer’s return; or • any distribution from most retirement plans (qualified and non-qualified) will decrease the eligible contribution.
Saver’s Credit for IRA Contributions. A credit of up to $1,000, or up to $2,000 if married filed jointly, may be available to certain taxpayers having a joint AGI of less than $53,000. Some of the restrictions that apply include: • the individual must be at least 18; • not a full-time student; • not declared as a dependent on another taxpayer’s return; or • any distribution from most retirement plans (qualified and non-qualified) will decrease the eligible contribution.
Saver’s Credit for IRA Contributions. A credit of up to $1,000, or up to $2,000 if married filing jointly, may be available to certain taxpayers having a joint AGI of less than $66,000 in 2021, or $68,000 in 2022. The credit may also be available to certain taxpayers who are heads of household with an AGI of less than $49,500 $214,000 in 2022, your deduction will be limited as described below. If your combined modified adjusted gross income exceeds $208,000 in 2021 or $214,000 in 2022, your contribution will not be deductible. Your spouse, as an “active participant” in an employer- sponsored retirement plan, may make a fully deductible contribution to a Traditional IRA if your combined modified adjusted gross income does not exceed the amounts listed in the table above. Conversely, if you are an “active” participant” and your spouse is not, a contribution to your Traditional IRA will be deductible if your combined modified adjusted gross income does not exceed the amounts listed above. • If you are married and file a separate return, and neither you nor your spouse is an “active participant” in an employer-sponsored retirement plan, you may make a fully deductible contribution to a Traditional IRA (up to the contribution limits detailed in Section 3). If you are married, filing separately, and either you or your spouse is an “active participant” in an employer-sponsored retirement plan, you may not make a fully deductible contribution to a Traditional IRA. Please note that the deduction limits are not the same as the contribution limits. You can contribute to your Traditional IRA in any amount up to the contribution limits detailed in Section 3. The amount of your contribution that is deductible for federal income tax purposes is based upon the rules described in this section. If you (or where applicable, your spouse) are an “active participant” in an employer- sponsored retirement plan, you can refer to IRS Publication 590-A: Figuring Your Modified AGI and Figuring Your Reduced IRA Deduction to calculate whether your contribution will be fully or partially deductible. Even if your income exceeds the limits described above, you may make a contribution to your IRA up to the contribution limitations described in Section 3. To the extent that your contribution exceeds the deductible limits, it will be nondeductible. However, earnings on all IRA in 2021, $51,000 in 2022, or married individuals filing separately and singles with an AGI less than $33,000 in 2021, or $34,000 in 2022. Some of the rest...
