Retirement Savings Contribution Income Tax Credit of up to $2,000
A taxpayer may be able to take a tax credit of up to $1,000 (up to $2,000 if filing jointly) if he or she makes eligible contributions to an employer sponsored retirement plan or an IRA. This credit is a nonrefundable tax credit. A nonrefundable credit means that the credit cannot exceed the amount of the tax liability. This credit has also been known in the past as the saver’s credit. This credit is in addition to any IRA contribution or contributions made to a qualified plan made by the taxpayer.
