| Tax Topic #610 |
2006 Tax Year |
Retirement Savings Contributions Credit
If you make eligible contributions to an employer-sponsored retirement plan or
to an individual retirement arrangement (IRA), you may be able to take a tax credit.
The amount of the saver's credit you can get is based on the contributions you make
and your credit rate. Refer to Chapter 4, Retirement Savings Contributions Credit,
in Publication 590, Individual Retirement Arrangements (IRAs),
for more information. Your credit rate can be as low as 10% or as high as 50%, depending
on your adjusted gross income. The lower your income, the higher the credit rate;
your credit rate also depends on your filing status. These two factors will determine
the maximum credit you may be allowed to take.
Use Form 8880, Credit for Qualified Retirement Savings Contributions,
to determine the rate and amount of the credit. Enter the amount of the credit on Form 1040 (PDF), or on Form 1040A (PDF).
You cannot use1040EZ to claim this credit.
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