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Are You Eligible for a Tax Credit?
March 2, 2010, Volume 56, No. 24

If you’re currently saving for retirement through Penn’s retirement plans or contributing to an Individual Retirement Account (IRA), you may be eligible for a tax credit for calendar year 2009. Up to $1,000 of your retirement savings could be returned as a tax credit if you meet certain income limits and eligibility requirements, including the following:

• You must be 18 years of age or older and not a full-time student in order to be eligible for the tax credit.

• You’re not eligible to receive the credit if you’re claimed as a dependent on someone else’s tax return.

• You must be within the following income limits in order to receive the credit:

Modified Adjusted Gross Income

Credit %

Maximum Tax Credit*

Married Filing Jointly

Head of Household


$0 - $33,000

$0 - $24,750

$0 - $16,500

50% of first $2,000 deferred


$33,001 - $36,000

$24,751 - $27,000

$16,501 - $18,000

20% of first $2,000 deferred


$36,001 - $55,500

$27,001 - $41,625

$18,001 - $27,750

10% of first $2,000 deferred


  • The maximum contribution taken into account for an individual is $2,000.

Source: Internal Revenue Service

Example:  Amy contributes $2,000 to her employer’s retirement plan for the 2009 calendar year. Because she’s single and her modified adjusted gross income is less than $16,500, she’s eligible for a $1,000 tax credit. The credit reduces the amount of taxes that she owes (or increases her tax refund) by $1,000 at tax-filing time.

For more information about the saver’s tax credit, visit the Internal Revenue Service’s website at www.irs.gov.

—Division of Human Resources

Related: HR: Upcoming Programs

Almanac - March 2, 2010, Volume 56, No. 24