Question

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

Answer 1

$1,000

Step-by-step explanation:

Calculation for the maximum saver's credit she may claim for the year

For us to know the maximum saver's credit amount that she may claim for the year we have to know the standard maximum contribution amount that is eligibe for the maximum saver's credit which is the amount of $2,000 and then we multiply the amount by the standard filing status and AGI percentage which is 50%

Hence:

Maximum saver's credit=$2,000*50%

Maximum saver's credit=$1,000

Therefore the maximum saver's credit she may claim for the year will be $1,000