If you contributed to a retirement account during the year, you may qualify for the Retirement Savings Contributions Credit, commonly called the Saver’s Credit. This nonrefundable tax credit rewards eligible taxpayers for saving for retirement and can help reduce the amount of tax they owe.
The credit is calculated on Form 8880 and carried to your tax return automatically when applicable.
Who Can Claim the Saver’s Credit?
You may qualify if all of the following apply:
- You were age 18 or older by the end of the tax year.
- You were not a full-time student during any part of five calendar months of 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 may qualify if they were made to:
- 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
Your actual credit depends on:
- Your filing status
- Your adjusted gross income (AGI)
- The amount you contributed to eligible retirement accounts
2026 AGI Limits for the Saver’s Credit
You cannot claim the credit if your AGI exceeds:
| Filing Status | Maximum AGI |
|---|---|
| Single, Married Filing Separately, or Qualifying Surviving Spouse | $39,500 |
| Head of Household | $59,250 |
| Married Filing Jointly | $79,000 |
2026 Credit Percentages Based on AGI
The Saver's Credit can equal 10%, 20%, or 50% of your eligible retirement contributions.
Married Filing Jointly
| AGI | Credit Rate |
|---|---|
| Up to $47,500 | 50% |
| $47,501 – $51,000 | 20% |
| $51,001 – $79,000 | 10% |
| Over $79,000 | Not eligible |
Head of Household
| AGI | Credit Rate |
|---|---|
| Up to $35,625 | 50% |
| $35,626 – $38,250 | 20% |
| $38,251 – $59,250 | 10% |
| Over $59,250 | Not eligible |
Single, Married Filing Separately, or Qualifying Surviving Spouse
| AGI | Credit Rate |
|---|---|
| Up to $23,750 | 50% |
| $23,751 – $25,500 | 20% |
| $25,501 – $39,500 | 10% |
| Over $39,500 | Not eligible |
How the Credit Works
For example, if you're a single filer with an AGI of $20,000 and contributed $2,000 to a traditional IRA, you may qualify for a credit equal to 50% of your contribution, resulting in a credit of up to $1,000.
Keep in mind that the Saver’s Credit is nonrefundable. It can reduce your tax bill to zero, but it can't generate a refund by itself.