In short
The saver's credit is a nonrefundable credit of 10%, 20% or 50% of up to $2,000 ($4,000 on a joint return) of contributions to retirement plans and individual retirement accounts by low- and moderate-income taxpayers.
Key takeaways
- The taxpayer must be at least 18, not a full-time student and not claimed as a dependent.
- The rate depends on adjusted gross income and filing status.
- From 2027 it is replaced by the Saver's Match, a federal contribution paid into the taxpayer's retirement account.
Where it's tested
REG: Filing Status, Credits & Alternative Minimum Tax — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An unmarried taxpayer pays more than half the cost of maintaining a separate household that is the principal residence of the taxpayer's dependent mother. The mother does not live with the taxpayer. What filing status may the taxpayer use?