Common use of Tax Credit for Contributions Clause in Contracts

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Xxxx XXX contributions. This credit may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are: • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Xxxx XXX and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. $1 – $37,000 $1 – $27,750 $1 – $18,500 50% $37,001 – $40,000 $27,751 – $30,000 $18,501 – $20,000 20% $40,001 – $62,000 $30,001 – $46,500 $20,001 – $31,000 10% Over $62,000 Over $46,500 Over $31,000 0% $1 – $38,000 $1 – $28,500 $1 – $19,000 50% $38,001 – $41,000 $28,501 – $30,750 $19,001 – $20,500 20% $41,001 – $63,000 $30,751 – $47,250 $20,501 – $31,500 10% Over $63,000 Over $47,250 Over $31,500 0%

Tax Credit for Contributions. You may be eligible to receive a tax credit for your Xxxx XXX contributions. This credit may not exceed $1,000 in a given year. You may be eligible for this tax credit if you are: are • age 18 or older as of the close of the taxable year, • not a dependent of another taxpayer, and • not a full-time student. The credit is based upon your income (see chart below), and will range from 0 to 50 percent of eligible contributions. In order to determine the amount of your contributions, add all of the contributions made to your Xxxx XXX and reduce these contributions by any distributions that you have taken during the testing period. The testing period begins two years prior to the year for which the credit is sought and ends on the tax return due date (including extensions) for the year for which the credit is sought. In order to determine your tax credit, multiply the applicable percentage from the chart below by the amount of your contributions that do not exceed $2,000. $1 – 1–38,500 $37,000 38,501–41,500 $1 – $27,750 $1 – $18,500 50% $37,001 – $40,000 $27,751 – $30,000 $18,501 – $20,000 20% $40,001 – $62,000 $30,001 – $46,500 $20,001 – $31,000 10% 41,501–64,000 Over $62,000 64,000 $1–28,875 $28,876–31,125 $31,126–48,000 Over $46,500 48,000 $1–19,250 $19,251–20,750 $20,751–32,000 Over $31,000 0% 32,000 50 20 10 0 $1 – 1–39,000 $38,000 39,001–42,500 $1 – $28,500 $1 – $19,000 50% $38,001 – $41,000 $28,501 – $30,750 $19,001 – $20,500 20% $41,001 – $63,000 $30,751 – $47,250 $20,501 – $31,500 10% 42,501–65,000 Over $63,000 65,000 $1–29,250 $29,251–31,875 $31,876–48,750 Over $47,250 48,750 $1–19,500 $19,501–21,250 $21,251–32,500 Over $31,500 32,500 50 20 10 0%