What is the Saver’s Credit?
This article on the Saver’s Tax Credit has been updated with info for the 2025 and 2026 tax years. The Saver’s Credit (aka the ‘Retirement Savings Contribution Credit‘) is a lesser known, highly advantageous tax credit that the IRS offers to incentivize low and moderate income taxpayers to make retirement contributions to an IRA, 401K, 403B, 457B, or any other IRS recognized retirement account.
What is nice about the Saver’s Credit is that it is an actual tax credit – not merely a tax deduction. If you’re not sure how the two differ, a tax deduction simply subtracts the value from your taxable income and you pay taxes on the remaining taxable income. A tax credit, on the other hand, actually gives you the entire dollar value back or subtracts the value from the taxes you owe – making it far more valuable monetarily than a deduction. In the case of the Saver’s Credit, it is non-refundable, meaning it can only be subtracted from the taxes you owe, possibly down to zero, but it can’t be refunded to you.
Unfortunately, due to its limited popularity (and a serious lack of retirement contributions), less than 6% of eligible taxpayers actually claim this tax credit – which is a huge shame, since it is so advantageous!
Let’s discuss some limitations to who can receive the Saver’s Credit.
2025 Maximum Income Level for the Saver’s Credit
The AGI (adjusted gross income) limit to qualify for the Saver’s Credit in 2025 is:
- $39,500 for single filers and married individuals filing separately
- $59,250 for heads of household
- $79,000 for married couples filing jointly
2026 Maximum Income Level for the Saver’s Credit
The AGI (adjusted gross income) limit to qualify for the Saver’s Credit in 2025 is:
- $40,250 for single filers and married individuals filing separately
- $60,375 for heads of household
- $80,500 for married couples filing jointly
How Much is the Saver’s Credit?
The short answer is that it depends on your income level and your contribution amount. It will take a small bit of effort to determine how much of a credit you will receive, but don’t let that deter you – if you are eligible, the result is free money!
The absolute most you could receive in a given year is $1,000 on a retirement contribution of $2,000 (double those numbers if married and filing jointly). In order to figure out what kind of credit you are eligible to receive, you will have to fill out IRS form 8880 (PDF), as the credit phases out at certain income levels. Or check out the contribution tables below. Once you figure out the amount of the credit from form 8880, add it to Form 1040 (PDF).
The best tax software programs should cover form 8880 automatically, but it’s worth verifying in order to make sure you get the credit, if you are eligible. Also, it’s worth knowing what the income level thresholds for the various credit percentages in the tables below, in order to determine eligibility.
2025 Saver’s Credit Amount by Income Level
2026 Saver’s Credit Amount by Income Level
Saver’s Credit Eligibility
The following individuals are not eligible for the Saver’s credit:
- Those under age 18.
- Full-time students (enrolled as full-time for 5 months and over in a calendar year).
- Those claimed as dependent on another person’s return.
- Those at income levels above the aforementioned limits.
Can you Claim Both the Earned Income Tax Credit and the Saver’s Credit?
Yes, the Earned Income Credit (EITC) and the Saver’s Credit can be simultaneously claimed.
Saver’s Credit Discussion:
- Have you ever claimed the Retirement Savings Contribution Credit (Saver’s Credit)?
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