Income for Married Couples	Income for Singles	Income for Head of Household	Credit Rate
AGI up to $30,000	AGI up to $15,000	up to $22,500	50%
$30,001 to $32,500	$15,001 to $16,250	$22,501 to $24,375	20%
$32,501 to $50,000	$16,251 to $25,000	$24,376 to $37,500	10%

 
Source: The Wall Street Journal
 
Another point to remember is that now you can put aside $4,000 a year into your Roth IRA and it will never be taxed! The Roth is the best thing we've been offered for retirement, but very few people take advantage of it. If you can afford it, set it up so that money is automatically taken out of your account for your Roth. If it's completely unrealistic to save $250 a month, then start smaller. Cutting out expensive coffee and cigarettes is one way to save money that you could turn around and put in an IRA!