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Retirement saver’s credit

This credit is worth as much as 50 percent of up to $2,000 contributed to an IRA, 401(k) or other retirement plan, for a maximum credit amount of $1,000 ($2,000 if filing jointly). The credit is designed to encourage lower-income workers to save for their retirement. The credit is phased out as income rises. Taxpayers under age 18 and those claimed as dependents on their parents’ returns are not eligible, regardless of their income.