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I have a question about the savers credit, available to us making under 25,000 (single) but still able to contribute to a retirement account. I've read that it can only be used to reduce what you owe, & won't add any if you are getting a refund. does that mean I need to adjust my w4 to make sure I owe money at the end of the year to be eligble? if correct, that seems ridiculusly difficult. thanks

The saver's credit is non-refundable. This means that it can be used to reduce your tax liability (not what you owe at the end of the year). If your tax liability is reduced "below" $0, you don't get the excess refunded to you. The key number you are looking at is line 55 (2002 Form 1040), not line 73.

Ira
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