Date last edited: 01/28/2008

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Savers Tax Credit

News reports estimate that 83% of Americans do not know about this new tax credit.

Starting in 2002, low and moderate income people who contribute to an IRA or qualified retirement plan may be able to get a tax credit up to $1,000 ($2000 if filing jointly). This may be used to reduce your federal income tax dollar for dollar.

You can claim the credit if:

  • you are age 18 or older
  • you are not a full time student
  • you are not an exemption on someone else's taxes
  • your adjusted gross income is at or below
    • $26,000 for a single filer
    • $39,000 is head of a household
    • $52,000 if married filing jointly
  • AND you made eligible contributions to an IRA, qualified retirement or deferred compensation plan.

Go to the IRS Website and download a copy of form 8880 and look at page 70-71, of the IRS Publication 590.

Source: Maryland State Law Library (MSLL)                                               Last date legally reviewed 1/08/08 (PPL/M.A.J)
Is this legal advice? This site offers legal information, not legal advice.  We make every effort to ensure the accuracy of the information and to clearly explain your options.  However we do not provide legal advice - the application of the law to your individual circumstances. For legal advice, you should consult an attorney.  See our section on Finding Legal Help.

About this website. The Maryland State Law Library, a court-related agency of the Maryland Judiciary, sponsors this site. The website was developed (1999-2007) as part of an access to justice initiative by the Maryland Legal Assistance Network (MLAN) in collaboration with a number of legal services providers serving low and moderate income Marylanders.  In the absence of file-specific attribution or copyright, the Maryland State Law Library may hold the copyright to parts of this website. You are free to copy the information for your own use or for other non-commercial purposes with the following language “Source: Maryland's People’s Law Library – www.peoples-law.org. © Maryland State Law Library, 2007.”

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