What is the Saver's Credit?
The Retirement Savings Contributions Credit (Saver’s Credit) helps low and middle-income taxpayers save for retirement. Sometimes this is called the Credit for Qualified Retirement Savings Contribution or Retirement Credit. It’s a non-refundable tax credit which means it can’t reduce the amount of tax owned to less than zero.
Based on your income and filing status, you may claim a credit on your return for a percentage of the contributions you made to a qualified retirement plan.
You qualify for the credit if you’re:
- 18 or older.
- Not a full-time student.
- Not claimed as a dependent on someone else’s return.
Also, in 2016 your adjusted gross income (AGI) can’t be more than:
- $61,500 if married filing jointly.
- $46,125 if head of household (with qualifying person).
- $30,750 if single, married filing separately, or qualifying widow(er) with dependent child.
The maximum credit is $1,000 ($2,000 for taxpayers who are married filing jointly), but is often less due to other deductions and credits and is limited by income. For more details on how to calculate your credit, see the IRS Saver's Credit page.
We’ll calculate this credit for you if you qualify and generate Form 8880.