1880424
You'll need to sign in or create an account to connect with an expert.
You probably do not qualify for the Saver's Credit.
The upper limit to be able to qualify for the Saver's Credit is based on your Adjusted Gross Income (AGI). This is line 11 on your form 1040.
The Standard Deduction is on line 12, so it does not factor into the AGI.
Please see this IRS webpage about the credit.
An AGI of $81,000 is well above the $65,000 AGI limit for being eligible to receive a Retirement Savings Contributions Credit. Even if you meant that you made a $5,000 deductible contribution that reduces your AGI to $76,000, that's still well above the $65,000 limit.
Your standard or itemized deductions are not a factor in determining your eligibility for this credit. The limit is based on AGI, not taxable income.
Roth IRA contributions are not deductible. If your AGI is $81,000 without any IRA contributions, deductible traditional IRA contributions of $6,000 each would still only bring your AGI down to $69,000 which is above the $65,000 limit for 2020. If you had above-the-line deductions in addition to a $12,000 IRA deduction that would bring your AGI down to $65,000 or below (but still over $48,750), your credit would likely be $400, but no more.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
tomodwyer2005
New Member
brian-h-bell
New Member
hbearden87
New Member
TuckerdogAVL
Level 5
baerZibby
New Member