Final answer:
Jill can claim a Retirement Savings Contributions Credit, likely to be $200, which is 20% of her $1,000 contribution to her IRA, based on her AGI and filing status. To confirm the precise amount, IRS guidelines for the tax year 2021 would need to be consulted.
Step-by-step explanation:
The question at hand is related to the Retirement Savings Contributions Credit, also known as the Saver’s Credit, which is a tax credit available to eligible taxpayers who make contributions to their retirement accounts, such as an Individual Retirement Account (IRA). Jill, who files a joint tax return with her unemployed husband, has an adjusted gross income (AGI) of $29,000 after making a $1,000 contribution to her IRA.
To determine the amount of the Saver’s Credit that Jill can claim, we'd generally consult the tax credit tables provided by the IRS for the corresponding tax year. The tables typically outline the credit percentage based on AGI and filing status. Without the exact table for 2021 but knowing that the credit ranges up to 50% of the first $2,000 contributed to a retirement account for those with lower incomes, and it gradually reduces as income increases. Given Jill's AGI and her filing status as married filing jointly, it is likely that the amount of Retirement Savings Contributions Credit she can claim would be a percentage of her $1,000 contribution. If Jill's income qualifies her for a credit rate of 20%, she may claim a credit of $200 (20% of $1,000). Therefore, option B, $200, is Jill’s probable credit amount. However, to ascertain the precise amount, one would need to refer to the IRS guidelines for the year 2021.