If a taxpayer is filing H/H and qualifies for the Retirement Savings Contribution Credit, what percent of the contribution would qualify if the AGI is $29,000?

Question

Business

Gwendolyn

15 July, 20:48

If a taxpayer is filing H/H and qualifies for the Retirement Savings Contribution Credit, what percent of the contribution would qualify if the AGI is $29,000?

+1

Answers (1)

Know the Answer?

Megan Wu · Answer 1

10%

Explanation:

Adjusted gross income (AGI) is the amount arrived at after some specific allowable deductions have been deducted from the total gross income.

The Retirement Savings Contributions Credit now called the Savers Credit provides a special tax break to those who are saving for retirement and in the low-income and moderate-income taxpayers category.

The amount to deduct depends on the AGI and how regularly the individual files tax returns. The rate of tax credit which is not refundable is 10%, 20% or 50% of the first $2,000 the parson contributed to a retirement account during the year.

The table for 2019 AGI shows that a single filler with the income range of $20,751-$32,000 can have a 10% savers credit.

Since the tax payer is a single filler, he is therefore qualified for 10% of his AGI of $29,000 which $2,900.