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Asked by Jenny Mclin on May 20, 2024

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Clarisse's filing status is head of household.She has modified adjusted gross income of $29,000 and she made a $2,000 contribution to her IRA.What is the amount of her retirement savings contributions credit?

Retirement Savings Contributions Credit

A non-refundable tax credit given to eligible taxpayers who make contributions to qualified retirement accounts, aimed at encouraging retirement savings.

Modified Adjusted Gross Income

An individual's AGI with certain deductions added back in; used to determine eligibility for certain tax benefits.

Head of Household

A tax filing status for unmarried taxpayers who provide more than half the cost of maintaining a home for a qualifying person.

  • Calculate the retirement savings contributions credit based on modified AGI and contributions.
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Tamara SweisMay 22, 2024
Final Answer :
Clarisse will receive a retirement savings contributions credit of $400.This is calculated as the $2,000 contribution multiplied by the applicable percentage of 20%.

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