Amy is single. During 2020, 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?
A)$1,250.
B)$2,500.
C)$1,000.
D)$0.

Question

Quizplus · Accepted Answer

The maximum saver's credit for an individual with an adjusted gross income of $12,000 who contributed $2,500 to a retirement account is 20% of the contribution, which is $500. However, the maximum amount of the credit that can be claimed for an individual with an adjusted gross income of $12,000 is $1,000, so Amy can claim a credit of $500 or the maximum credit of $1,000.

Amy Is Single