You may be eligible for a tax credit for making eligible contributions to your IRA or other employer-sponsored retirement plan.
Go to this section in Credit Karma Tax: Retirement Savings Contribution Credit (Form 8880)
To qualify for the Retirement Savings Contributions Credit (Saver’s Credit), you must meet all of the following criteria:
- You must be at least 18 years old
- You cannot be a full-time student
- You cannot be claimed as a dependent on someone else’s return
- Your adjusted gross income cannot exceed a certain threshold (see link below)
The tax credit may be a percentage of your retirement plan or IRA contributions, based your adjusted gross income (AGI), and it’s more beneficial to those with the lowest incomes.
Consult the grid on the IRS page for Retirement Savings Contributions Credit (Saver’s Credit) to see if your AGI qualifies you for the Saver’s Credit.