Amy is single. During 2017, she determined her adjusted gross income was $12,000.During the year, Amy also contributed $1,500 to a Roth IRA. What is the maximum saver's credit she may claim for the year?

Question

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The Saver's Credit, also known as the Retirement Savings Contribution Credit, is a tax credit available to eligible individuals who make eligible contributions to a qualified retirement plan or IRA. The credit is based on the taxpayer's adjusted gross income (AGI), filing status, and the amount of eligible contributions made during the year. For 2017, the maximum credit is $1,000 for single filers with an AGI of $31,000 or less. Since Amy's AGI is only $12,000, she may be eligible for the credit. However, the credit is only worth 50%, 20%, or 10% of the eligible contributions depending on the taxpayer's AGI. In Amy's case, her credit would be worth 50% of her $1,500 eligible contribution, or $750. Therefore, the correct answer is D.

Amy Is Single