Final answer:
The incorrect statement about the saver's credit eligibility is that it can be claimed by students; full-time students are not eligible for this credit.
Step-by-step explanation:
The statement that is INCORRECT regarding eligibility for the saver's credit is: c) It can be claimed by students. The saver's credit, also known as the retirement savings contributions credit, is designed to encourage individuals at all income levels to save for retirement by providing a tax credit for eligible contributions to retirement accounts such as Individual Retirement Accounts (IRAs) and 401(k)s. However, this credit cannot be claimed by full-time students, individuals who are claimed as dependents on another person's tax return, or those who are under age 18.
Eligibility for this credit is indeed based on the taxpayer's filing status and income, and it is available for contributions to retirement accounts like IRAs and 401(k)s through an employer. Notably, the credit helps increase the return on saving in these accounts by providing significant tax advantages, including deferring taxes until funds are withdrawn after retirement.