Final answer:
High-income taxpayers are not allowed to receive the saver's credit. The saver's credit is a tax credit designed to encourage retirement savings, but it is phased out for higher income individuals.
Step-by-step explanation:
High-income taxpayers are not allowed to receive the saver's credit. The saver's credit, also known as the retirement savings contributions credit, is a tax credit designed to encourage low- to moderate-income individuals to save for retirement. It provides a tax credit of up to $1,000 for individuals ($2,000 for married couples) who make eligible contributions to a retirement savings account, such as an IRA or 401(k). However, the credit is phased out for high-income individuals, meaning that as their income increases, the amount of the credit they are eligible for decreases.