Yes, but within limits.
Most of the time
taxpayers don't qualify for the Saver's Credit it is because of income
limitations (read: They make too much money).
In 2017, the maximum
adjusted gross income for Saver's Credit eligibility is $62,000 for a married
couple filing jointly, $46,500 for a head of household, and $31,000 for all
other taxpayers. The maximum credit you can claim phases out as your income increases.
To claim a Saver's
Credit, you must be age 18 or older and you cannot be a full-time student or be
claimed as a dependent on someone else's tax return. Your retirement
contribution must have been made during the tax year for which you are filing
your return. And you must meet the income requirements.
Depending on your
adjusted gross income and tax filing status, you can claim the credit for 50%,
20% or 10% of the first $2,000 you contribute during the year to a retirement
account. Therefore, the maximum credit amounts that can be claimed are $1,000, $400
or $200.
The biggest credit
amount a married couple filing jointly can claim together is $2,000. But if you
and/or your spouse took a taxable distribution from your retirement account
during the two years prior to the due date for filing your return (including extensions),
that distribution reduces the size of the Savers Credit available to you.
The Saver's Credit
is a 'non-refundable' credit. That means this credit can reduce the tax you owe
to zero, but it can't provide you with a tax refund.
TurboTax will fill
in all the right forms for you.
