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RETIREMENT SAVINGS CREDIT
• Federal credit
• Non-refundable credit
About this credit - The Retirement Savings Credit gives a special tax
break to those who are saving for retirement.
What is the maximum credit? - The maximum credit amount is 50%,
20% or 10% of your retirement plan or Individual Retirement Account (IRA)
contributions up to $2,000 ($4,000 if married ling jointly), depending on your
Are you eligible? - Eligibility for the RSC depends on your ling status and
income. General guidelines to qualify for the credit are:
• Age 18 or older
• Not a full-time student
• Not claimed as a dependent on another person’s return
Credit Rate Single Filer Head of Household Joint Filers
50% $18,500 or less $27,750 or less $37,000 or less
20% $18,501 - $20,000 $27,751-$30,000 $37,001-$40,000
10% $20,001-$30,750 $30,001-$46,125 $40,000-$61,500
Example: Christine les as a head of household. She’ll contribute $1,200 to
her retirement plan this year. If her 2016 adjusted gross income is $28,000, she
can claim a 20% Retirement Savings Credit for her contribution, worth $240.
What documents do you need? - Documentation of contributions to a
qualifying retirement plan. This is often recorded on Form W-2.