What is the Saver's Credit?
This credit rewards low- and moderate-income individuals who contribute to retirement accounts or ABLE plans. It’s a nonrefundable tax credit worth up to $1,000 ($2,000 for married couples) and can reduce your tax bill dollar-for-dollar.
How Much Can You Claim?
The credit is 10%, 20%, or 50% of eligible contributions, capped at $2,000 for single filers ($4,000 for joint filers). For example:
50% credit: Up to $1,000 ($2,000 joint)
20% credit: Up to $400 ($800 joint)
10% credit: Up to $200 ($400 joint)
The amount of the saver's credit you can get can be as low as 10% or as high as 50% and is generally based on the contributions you make and your adjusted gross income.
Eligibility Requirements
Age: Must be 18+ and not a full-time student.
Income: Adjusted gross income (AGI) must be below thresholds (e.g., $79,000 for married couples in 2025).
Dependency: Cannot be claimed as a dependent on another’s return.
Which Accounts Qualify?
Contributions to traditional/Roth IRAs, 401(k), 403(b), 457 plans, ABLE accounts, or SIMPLE IRAs may qualify. Rollovers do not count.
How to Claim It
Form 8880: Calculate your credit using this IRS form.
Form 1040: Report the credit on your tax return (attach Schedule 3 and Form 8880).
Claim the credit on Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors or on Form 1040-NR, U.S. Nonresident Alien Income Tax Return (attach Schedule 3 (Form 1040) PDF and Form 8880).
Need help? Check IRS resources like Publication 590-A or Form 8880 instructions.