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Modified AGI limit for retirement savings contributions credit increased. For 2011, you may be able to claim the retirement savings contributions credit if your modified AGI is not more than:
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$56,500 if your filing status is married filing jointly,
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$42,375 if your filing status is head of household, or
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$28,250 if your filing status is single, married filing separately, or qualifying widow(er).
You may be able to take a tax credit if you make eligible contributions (defined later) to a qualified retirement plan, an eligible deferred compensation plan, or an individual retirement arrangement
(IRA). You may be able to take a credit of up to $1,000 (up to $2,000 if filing jointly). This credit could reduce the federal
income tax you pay dollar for dollar.
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You were born before January 2, 1994.
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You are not a full-time student (explained later).
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No one else, such as your parent(s), claims an exemption for you on their tax return.
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Your adjusted gross income (defined later) is not more than:
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$56,500 if your filing status is married filing jointly,
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$42,375 if your filing status is head of household, or
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$28,250 if your filing status is single, married filing separately, or qualifying widow(er).
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A full-time student at a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or
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A student taking a full-time, on-farm training course given by either a school that has a regular teaching staff, course of study, and regularly enrolled body of students in attendance, or a state, county, or local government.
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Foreign earned income,
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Foreign housing costs,
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Income for bona fide residents of American Samoa, and
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Income from Puerto Rico.
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Contributions to a traditional or Roth IRA,
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Salary reduction contributions (elective deferrals, including amounts designated as after-tax Roth contributions) to:
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A 401(k) plan (including a SIMPLE 401(k)),
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A section 403(b) annuity,
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An eligible deferred compensation plan of a state or local government (a governmental 457 plan),
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A SIMPLE IRA plan, or
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A salary reduction SEP, and
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Contributions to a section 501(c)(18) plan.
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The portion of any distribution which is not includible in income because it is a trustee-to-trustee transfer or a rollover distribution.
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Distributions that are taxable as the result of an in-plan rollover to your designated Roth account.
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Any distribution that is a return of a contribution to an IRA (including a Roth IRA) made during the year for which you claim the credit if:
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The distribution is made before the due date (including extensions) of your tax return for that year,
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You do not take a deduction for the contribution, and
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The distribution includes any income attributable to the contribution.
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Loans from a qualified employer plan treated as a distribution.
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Distributions of excess contributions or deferrals (and income attributable to excess contributions and deferrals).
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Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k).
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Distributions from an eligible retirement plan that are converted or rolled over to a Roth IRA.
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Distributions from a military retirement plan.
Example.
You and your spouse filed joint returns in 2009 and 2010, and plan to do so in 2011 and 2012. You received a taxable distribution from a qualified plan in 2009 and a taxable distribution from an eligible deferred compensation plan in 2010. Your spouse received taxable distributions from a Roth IRA in 2011 and tax-free distributions from a Roth IRA in 2012 before April 17. You made eligible contributions to an IRA in 2011 and you otherwise qualify for this credit. You must reduce the amount of your qualifying contributions in 2011 by the total of the distributions you received in 2009, 2010, 2011, and 2012.
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