The USA offers a retirement savings contributions credit for those earning $63,000 or less in 2018 (in 2017 the maximum earning were $62,000). The retirement savings tax credit is not as widely know as it should be.
The income level is based on Adjusted Gross Income (AGI). So some deductions from your gross income are allowed; earnings would reduced for contributions to a Healthcare Savings Account or traditional IRA to calculate the AGI). It is also reduced by the deductible for the self employment (social security tax) and for investment losses (up to a maximum of $3,000). The AGI is the value on the bottom of the first page of the 1040.
The Credit can be taken for contributions to a traditional or Roth IRA; your 401(k), SIMPLE IRA, SARSEP, 403(b), 501(c)(18) or governmental 457(b) plan; and your voluntary after-tax employee contributions to your qualified retirement and 403(b) plans.
The amount of the credit is 50%, 20% or 10% of your retirement contributions up to $2,000 ($4,000 if married filing jointly). Learn more on the IRS website.
Related: IRAs and 401(k)s are a Great Way to Save for Retirement – Financial Independence Retire Early (FIRE) and Location Independent Working – Save What You Can, Increase Savings as You Can Do So – Using Annuities as Part of a Retirement Plan – 401(k) Options, Seek Low Expenses