Asked by Alexandra Ibanez on May 07, 2024

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The maximum contribution amount for the retirement savings contributions credit for each tax year is 20% of a taxpayer's AGI.

Retirement Savings Contributions Credit

A tax credit available to lower-income individuals who contribute to retirement accounts.

AGI

Adjusted Gross Income; income calculation used to determine how much of your income is taxable after certain adjustments are made.

  • Recognize the impact of AGI on the availability and amount of various tax credits including the retirement savings contributions credit.
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Verified Answer

MH
Markela HudsonMay 14, 2024
Final Answer :
False
Explanation :
The retirement savings contributions credit (Saver's Credit) is based on up to $2,000 of contributions to a retirement account ($4,000 if married filing jointly), not a percentage of the taxpayer's AGI.