What is the savers credit rate?
A-6: The saver’s credit rate is based on the taxpayer’s adjusted gross income for the taxable year for which the credit is claimed, as follows: Adjusted Gross Income ——————— Married filing Head of All other joint household filers Credit ————– ——— ——— —— $0-$30,000 $0-$22,500 $0-$15,000 50% of contribution $30,001-$32,500 $22,501-$24,375 $15,001-$16,250 20% of contribution $32,501-$50,000 $24,376-$37,500 $16,251-$25,000 10% of contribution Over $50,000 Over $37,500 Over $25,000 credit not available For example, a taxpayer whose filing status is single with adjusted gross income of $15,000 may be entitled to a credit equal to 50% of his or her contributions (up to $2,000 of contributions) to a plan described in A- 5 above. Q-7: Does the saver’s credit affect an eligible individual’s entitlement to any deduction or exclusion that would otherwise apply to the contribution? A-7: No. Eligible individuals entitled to deduct IRA contributions or to exclud
