Saver's Credit Calculator (Form 8880)
The Saver's Credit (officially the Retirement Savings Contributions Credit, IRS Form 8880) gives low and middle-income workers a 10%, 20%, or 50% non-refundable tax credit on retirement contributions up to $2,000 single / $4,000 married. Calculate your 2026 credit instantly.
What Is the Saver's Credit?
The Saver's Credit — formally the Retirement Savings Contributions Credit — is a non-refundable federal tax credit for low and moderate-income workers who contribute to qualified retirement accounts. It is claimed on IRS Form 8880 and is one of the most underclaimed credits in the tax code: per Treasury data, only ~12% of eligible filers actually claim it.
Saver's Credit 2026 — Income Limits and Rates
The credit rate is 50%, 20%, or 10% of contributions, based on AGI per IRS 2026 brackets:
- Married Filing Jointly: 50% if AGI ≤ $47,500 · 20% if $47,501–$51,000 · 10% if $51,001–$79,000 · 0% above $79,000
- Head of Household: 50% if AGI ≤ $35,625 · 20% if $35,626–$38,250 · 10% if $38,251–$59,250 · 0% above $59,250
- Single / MFS: 50% if AGI ≤ $23,750 · 20% if $23,751–$25,500 · 10% if $25,501–$39,500 · 0% above $39,500
The credit applies to up to $2,000 of contributions ($4,000 if MFJ) — meaning the maximum credit is $1,000 single / $2,000 MFJ at the 50% rate.
Eligibility Rules — Who Qualifies?
Per IRS guidance, you must:
- Be 18 or older at year-end
- Not be a full-time student during any 5 months of the year
- Not be claimed as a dependent on another taxpayer's return
- Have made eligible contributions to a 401(k), 403(b), 457, traditional/Roth IRA, SEP, SIMPLE, ABLE account, or governmental TSP
How to Claim the Saver's Credit
Complete Form 8880 and attach to Form 1040. Distributions from retirement accounts in the past 2 tax years (and through the due date of the current return) reduce eligible contributions — this is the "testing period" rule designed to prevent gaming. The credit is non-refundable, meaning it can reduce your tax to $0 but won't generate a refund beyond that.
Sources: IRS Form 8880 instructions, IRS Publication 590-A, IRC §25B. Income limits adjust annually for inflation. Last updated 2026-05.
Frequently Asked Questions
What is the Savers Credit?
The Savers Credit (IRS Form 8880) is a non-refundable federal tax credit worth up to $1,000 single / $2,000 MFJ for low- and middle-income workers who contribute to retirement accounts like 401(k), IRA, 403(b), or ABLE accounts.
What are the 2026 income limits?
MFJ: 50% rate up to $47,500 AGI, phases to 0% above $79,000. HoH: 50% up to $35,625, 0% above $59,250. Single: 50% up to $23,750, 0% above $39,500. Adjusted annually for inflation.
Is the Savers Credit refundable?
No. It is non-refundable, meaning it can reduce your tax bill to $0 but cannot generate a refund larger than your tax owed. Combine with the EITC for refundable benefits.
Who is NOT eligible?
You cannot claim if (1) under age 18, (2) a full-time student for 5+ months of the year, or (3) claimed as a dependent on another return. These rules prevent students from gaming the credit.
What contributions qualify?
Traditional and Roth IRA, 401(k), 403(b), governmental 457, SEP, SIMPLE, TSP, and ABLE account contributions. Employer matches do NOT count — only your own contributions.
Do retirement distributions reduce the credit?
Yes. Distributions taken in the past 2 tax years and through the current returns due date reduce eligible contributions dollar-for-dollar (the "testing period" rule). This prevents withdrawing money just to redeposit it for the credit.