If you contributed to a retirement account during the year, you may qualify for the Retirement Savings Contributions Credit, better known as the Saver’s Credit. This nonrefundable tax credit rewards eligible taxpayers for saving for retirement and can help lower the amount of federal income tax they owe.
If you're eligible, the credit is calculated on Form 8880 and automatically carried to your tax return.
Who Can Claim the Saver’s Credit?
You may qualify for the Saver’s Credit if all of the following are true:
- You were age 18 or older by the end of the tax year.
- You were not a full-time student for any part of five calendar months during the year.
- You were not claimed as a dependent on someone else's tax return.
- You made eligible contributions to a qualified retirement account.
Eligible Retirement Accounts
Contributions to the following accounts may qualify for the Saver’s Credit:
- Traditional IRA
- Roth IRA
- 401(k)
- 403(b)
- Governmental 457(b) plan
- Federal Thrift Savings Plan (TSP)
- SIMPLE IRA
- SARSEP
- ABLE account contributions made by a designated beneficiary
How Much Is the Saver’s Credit Worth?
The maximum credit is:
- Up to $1,000 for Single, Head of Household, Married Filing Separately, or Qualifying Surviving Spouse filers.
- Up to $2,000 for Married Filing Jointly filers.
The amount of your credit depends on:
- Your filing status
- Your adjusted gross income (AGI)
- How much you contributed to eligible retirement accounts
2026 Income Limits for the Saver’s Credit
You can't claim the Saver’s Credit if your AGI exceeds the limit for your filing status:
- Single, Married Filing Separately, or Qualifying Surviving Spouse: $39,500
- Head of Household: $59,250
- Married Filing Jointly: $79,000
2026 Saver’s Credit Rates
The credit is worth 10%, 20%, or 50% of your eligible retirement contributions, depending on your AGI and filing status.
Married Filing Jointly
- AGI up to $47,500: 50% credit rate
- AGI from $47,501 to $51,000: 20% credit rate
- AGI from $51,001 to $79,000: 10% credit rate
- AGI over $79,000: Not eligible
Head of Household
- AGI up to $35,625: 50% credit rate
- AGI from $35,626 to $38,250: 20% credit rate
- AGI from $38,251 to $59,250: 10% credit rate
- AGI over $59,250: Not eligible
Single, Married Filing Separately, or Qualifying Surviving Spouse
- AGI up to $23,750: 50% credit rate
- AGI from $23,751 to $25,500: 20% credit rate
- AGI from $25,501 to $39,500: 10% credit rate
- AGI over $39,500: Not eligible
How the Saver’s Credit Works
Here's a simple example. Suppose you're a single filer with an AGI of $20,000 and you contributed $2,000 to a traditional IRA during the year. Because your income falls within the highest credit percentage range, you may qualify for a credit equal to 50% of your contribution. That would give you a tax credit of up to $1,000.
Keep in mind that the Saver’s Credit is nonrefundable. It can reduce your tax liability to zero, but it won't create a refund on its own if you don't owe any tax.
Saving for retirement can help you build future financial security, and the Saver’s Credit provides an additional tax benefit for eligible taxpayers who contribute to qualifying retirement accounts. When you prepare your return, our software will determine whether you qualify and calculate the credit automatically.