You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan.

Who Is Eligible For The Credit?

You’re eligible for the credit if you’re:

1. Age 18 or older;
2. Not a full-time student; and
3. Not claimed as a dependent on another person’s return.

See the instructions for Form 8880, Credit for Qualified Retirement Savings Contributions, for the definition of a full-time student.

Amount Of The Credit

The amount of the credit is 50%, 20% or 10% of your retirement plan or IRA contributions up to $2,000 ($4,000 if married filing jointly), depending on your adjusted gross income (reported on your Form 1040 or 1040A). Use the chart below to calculate your credit.

*Single, married filing separately, or qualifying widow(er).

2018 Saver’s Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $38,000	AGI not more than $28,500	AGI not more than $19,000
20% of your contribution	$38,001 – $41,000	$28,501 – $30,750	$19,001 – $20,500
10% of your contribution	$41,001 – $63,000	$30,751 – $47,250	$20,501 – $31,500
0% of your contribution	more than $63,000	more than $47,250	more than $31,500

 

2017 Saver’s Credit
Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of your contribution	AGI not more than $37,000	AGI not more than $27,750	AGI not more than $18,500
20% of your contribution	$37,001 – $40,000	$27,751 – $30,000	$18,501 – $20,000
10% of your contribution	$40,001 – $62,000	$30,001 – $46,500	$20,001 – $31,000
0% of your contribution	more than $62,000	more than $46,500	more than $31,000

See IRS Rules On Retirement Savings.