Amy is single.During 2019,she determined her adjusted gross income was $12,000.During the year,Amy also contributed $2,500 to a Roth IRA.What is the maximum saver's credit she may claim for the year?

Question

Quizplus · Accepted Answer

The maximum saver's credit for a single filer with an adjusted gross income of $12,000 is 10%. Therefore, the maximum saver's credit Amy may claim is $250 ($2,500 x 10%). However, the maximum saver's credit that can be claimed is limited to $1,000. Therefore, Amy can claim a saver's credit of $250, but not the full $1,250, making choice C the correct answer.

Amy Is Single