Yes. TSP contributions qualify for the Saver's Credit as long as the other requirements are met.
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).
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.
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.
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.
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