The maximum eligible contribution is $2,000 ($4,000 for married filing jointly), and the maximum credit is $1,000 ($2,000 for joint filers). Contributions to traditional or Roth IRAs, 401(k)s, and similar retirement accounts qualify, but rollover contributions do not. The credit is reduced by any recent retirement account distributions.

Income limits for the credit vary based on filing status. For example, in 2024, married couples filing jointly with an AGI of up to $46,000 can claim the 50% credit, while those earning up to $76,500 may qualify for a lower percentag