A nonrefundable federal tax credit for eligible lower- and moderate-income taxpayers who make qualifying contributions to retirement accounts or an ABLE account they own.
Eligible taxpayer making qualified retirement or ABLE contributions
Entitlement facts
Benefit type
Government benefit. A government-funded or administered benefit, service, coverage program, assistance program, or public access route. Taxonomy definition →
What it unlocks
A credit equal to 10%, 20%, or 50% of up to $2,000 of eligible contributions per person, for a maximum credit of $1,000 per filer or $2,000 on an eligible joint return, limited by tax liability.
Who qualifies
Eligible taxpayer making qualified retirement or ABLE contributions
Requirements
The filer must be at least 18, not claimed as another person's dependent, not a full-time student under the tax rules, and within the adjusted-gross-income limit for the filing status and tax year. Qualifying contributions and recent distributions are accounted for under IRS rules.
How to activate
Make an eligible contribution by the applicable deadline, retain plan or account records, calculate the credit on Form 8880, and claim it with the federal income-tax return.
Cost basis
No-cost access. The core benefit has no required payment, purchase, deposit, paid membership, or pre-existing paid-product relationship under the captured terms.
Cost and fees
There is no fee to claim the credit, but it is nonrefundable and cannot exceed income-tax liability. Account fees, early-distribution taxes, contribution limits, and tax-preparation costs can still apply.
Geography
US
Personalization
Published eligibility is not described as individually targeted.
EVIDENCE / 1 SOURCE
Eligibility is conditional, not guaranteed.
Check the provider's final terms immediately before applying, depositing funds, spending, or changing a paid relationship.
Local federally funded community learning centers provide before-school, after-school, weekend, and summer academic enrichment, youth development, and family education, particularly for students at high-poverty and low-performing schools.
Condition
Variable by provider or eligibility
Personalized
No
002Verified
SU
Substance Abuse and Mental Health Services Administration · Government benefit
Free, confidential crisis support by call, text, or chat for people in suicidal, mental-health, or substance-use crisis and for people worried about someone else.
Condition
No-cost access
Personalized
No
003Verified
CI
City of Albuquerque Transit Department · Government benefit