Saver's Credit

[nouseforausername]

Talking to a friend of mine who's a single filer, not claimed as a dependent, and only has an AGI of 18k for 2023.  All earned income. 

As is, they don't owe much in taxes, and will eek out a small EIC, but, question:

There's nothing wrong with them contributing double whatever their Line 24 Total Tax is to an IRA by 4/15/24 in order to zero out their total taxes owed via the Saver's Credit???

[terran]

No, nothing wrong. It should be a Roth IRA since the traditional IRA deduction doesn't do them any good if the savers credit will already eliminate their tax liability. The savers credit goes on Schedule 3 Part I, which then goes on Form 1040 line 20 and reduces line 22. It doesn't, however reduce  taxes from Schedule 2 then end up on line 23, so it may not eliminate all taxes on line 24. For example, if any of their income is from self employment the savers credit won't reduce self employment tax. They should contributing twice line 22 before the credit, not line 24.

[nouseforausername]

@terran Thank you!!!