Retirement Savings Contribution Credit
Retirement Savings Contribution Credit Fact Sheet (2009)
You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly) if you make eligible contributions to a qualified IRA, 401K and certain other retirement plans.
The Retirement Savings Contribution Credit applies to individuals with incomes up to $27,750 ($41,625 for a head of household) and married couples, filing jointly, with incomes up to $55,500. You must also be at least age 18, not a full-time student, and not claimed as a dependent on another person’s tax return.
The credit is a percentage of the qualifying contribution amount, with the highest rate for those with the least income, as shown below:
| Credit Rate |
Income for Married Joint Returns |
Income for Head of Household |
Income for Others |
50% |
up to $33,000 |
up to $24,750 |
up to $16,500 |
20% |
$33,001-36,000 |
$24,751-27,000 |
$16,501-18,000 |
10% |
$36,001-55,500 |
$27,001-41,625 |
$18,001-27,750 |
For more information, review IRS Publication 590, “Individual Retirement Arrangements”, Form 8880, “Credit for Qualified Retirement Savings Contribution”, or visit the IRS website at www.irs.gov. For forms or publications call the IRS toll free at 1-800-TAX-FORM (1-800-820-3676). |
