Saver's Tax Credit Calculator
Check eligibility and amount for the Federal Saver's Credit — a non-refundable tax credit up to $1,000 ($2,000 MFJ) for retirement contributions.
What Is the Saver's Tax Credit?
The Saver's Tax Credit (Retirement Savings Contributions Credit, IRS Form 8880) is a federal non-refundable tax credit of 10-50% on retirement contributions up to $2,000 per person ($4,000 MFJ). The credit is targeted at low and moderate income taxpayers — it phases out above $38,250 single / $76,500 MFJ for 2026.
This is one of the most underused credits in the US tax code — IRS data shows fewer than half of eligible filers claim it. If your income qualifies, this credit effectively makes the first $2K-$4K of your retirement contribution 'paid for' by the government. Source: IRS Form 8880 instructions, Section 25B. Last updated: May 2026.
2026 Saver's Credit AGI Tiers
| Filing Status | 50% Credit | 20% Credit | 10% Credit |
|---|---|---|---|
| Single | $0-$24,750 | $24,751-$27,000 | $27,001-$38,250 |
| HoH | $0-$37,125 | $37,126-$40,500 | $40,501-$57,375 |
| MFJ | $0-$49,500 | $49,501-$54,000 | $54,001-$76,500 |
Above the 10% tier, the credit is zero. Below it, contributing to retirement effectively yields 10-50% immediate tax savings ON TOP of the regular tax deduction (for Traditional accounts).
Eligibility Requirements
Three requirements that disqualify you, regardless of income: (1) You must be at least 18 years old. (2) You CANNOT be a full-time student for 5 or more months during the year. (3) You CANNOT be claimed as a dependent on someone else's return. The student exclusion is particularly important — it means many recent grads who would otherwise qualify can't claim it for the year they were in school.
Eligible Retirement Contributions
The credit applies to contributions to: (1) Traditional or Roth IRA, (2) 401(k), 403(b), 457(b) plans (employee elective contributions only, not employer match), (3) SIMPLE IRAs and SEPs, (4) ABLE accounts (for individuals with disabilities). Up to $2,000 of contributions per person counts ($4,000 MFJ). Contributions BEYOND $2K still build wealth but don't increase the credit.
Frequently Asked Questions
What is the Saver's Tax Credit?
A federal non-refundable tax credit for low/moderate-income taxpayers who contribute to retirement accounts. The credit equals 10%, 20%, or 50% of the first $2,000 contributed ($4,000 MFJ), based on AGI. Maximum credit: $1,000 single / $2,000 MFJ.
Is the Saver's Credit refundable?
No. The Saver's Credit is non-refundable \u2014 it can reduce your federal tax liability to zero, but it won't generate a refund beyond your liability. If you owe $400 in tax and qualify for $1,000 credit, you save $400 and forfeit the remaining $600. The non-refundability is a major limitation for the lowest-income earners.
Can I claim Saver's Credit if I'm a college student?
If you're a full-time student for 5 or more months of the year, you're disqualified from claiming the Saver's Credit \u2014 regardless of income. Part-time students (under 5 months full-time) can still claim it. This excludes most undergrad and grad students from the credit during school years.
Do employer 401(k) matching contributions count for Saver's Credit?
No. Only YOUR elective contributions (out of your paycheck) count toward the credit. Employer matching is excluded. So if you contribute $3,000 and your employer matches $1,500, only your $3,000 (up to the $2,000 max considered) counts.
When do I claim the Saver's Credit?
Claim on IRS Form 8880, filed with your annual return. You can contribute to an IRA (Traditional or Roth) up until the April 15 filing deadline of the following year and have it count for the prior year's credit. 401(k) contributions must be made by December 31 to count for that tax year.
Can I get the Saver's Credit if I owe no federal tax?
Technically yes \u2014 the credit reduces your tax to zero. But you can't get a refund beyond zero. So if you owe $0, the credit gives you $0 benefit. EITC and other refundable credits exist specifically for low earners with zero tax liability. Always file even if you owe zero tax \u2014 multiple refundable credits may apply.