For 2004, if you make eligible contributions to an employer-sponsored retirement plan or to an individual retirement arrangement (IRA), you may be able to take a tax credit. The amount of the saver's credit you can get is based on the contributions you make and your credit rate. Refer to Publication 590, Individual Retirement Arrangement, for more information. Your credit rate can be as low as 10% or as high as 50%, depending on your adjusted gross income. The lower your income, the higher the credit rate; your credit rate also depends on your filing status. These two factors will determine the maximum contribution you may be allowed to take.

Use Form 8880, Credit for Qualified Retirement Savings Contributions, to determine the rate and amount of the credit. Enter the amount of the credit on Form 1040(PDF), line 52, or on Form 1040A(PDF), line 33. You cannot use Form 1040EZ(PDF) to claim this credit.