Tax Tip #286

Ralph Loggia • February 17, 2026

Contribute $2,000 to an IRA - IRS Might Give You $1,000

Taxpayers with an AGI of $23,750 or less in 2025 may be eligible for a $1,000 tax credit — if they contribute $2,000 or more to a traditional or Roth IRA. 


This credit, claimed on IRS Form 8880, gradually decreases and phases out completely for an AGI above $79,000 (married filing jointly) and $39,500 (single). For 2026, the phase-out limits increase to $80,500 (MFJ) and $40,250 (single).


If you think this may apply to your tax situation, reach out to see if you qualify.

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