You may be entitled to a saver’s tax credit if you make eligible contributions to an IRA or a work retirement plan. You have until April 15th of the current year to make the contribution.
Per the IRS, below are the specifications of the credits:
Eligibility:
- Individual is 18 or older
- Individual is not claimed as a dependent in someone else’s return
- Individual is not a student
Credit Amount:
- The maximum contribution amount is $2,000 ($4,000 if married filing jointly). This makes the credit $1,000 ($2,000 if married filing jointly)
- Credit is dependent upon your adjusted gross income (AGI) reported on 1040 (see table below), the credit will be 50%, 20%, 10% of:
- Contributions to a traditional or Roth IRA
- Contributions to 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan through salary deferral
- Employee contributions made after-tax to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan
- Contributions to a 501(c) (18)(D) plan
- Contributions made to an ABLE account for which you are the designated beneficiary (beginning in 2018)
- Contributions that don’t qualify
- Rollover contributions
- Eligible contributions can be reduced by distribution made from a retirement plan, IRA, or from an ABLE account
Saver’s Credit Table
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers* |
|---|---|---|---|
| 50% of your contribution | AGI not more than $43,500 | AGI not more than $32,625 | AGI not more than $21,750 |
| 20% of your contribution | $43,501 – $47,500 | $32,626 – $35,625 | $21,751 – $23,750 |
| 10% of your contribution | $47,501 – $73,000 | $35,626 – $54,750 | $23,751 – $36,500 |
| 0% of your contribution | More than $73,000 | More than $54,750 | More than $36,500 |
| *Single, married filing separately, or qualifying widow(er) Source: IRS.gov |
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Need Help Filing Your Return?
If you need help with your return, you can go here.
- Call: 800-829-1040
- 7 am to 7 pm local time
Callers who are hard of hearing or deaf:
- TTY/TDD 800-829-4059
Check Your Refund
To check the status of your refund, you can go here.
Mindful Reminder
If you have opted to do your tax return, remember to be patient as it’s challenging to learn about tax laws. Give yourself ample time to process and review last year’s return as a guide. If you need help, visit IRS.gov. Implement a method to center yourself if you become anxious or stressed. When you are relaxed, you will find it much easier to understand and complete the return.
Seeking Help
If you are depressed, anxious, or have panic attacks, find a health professional who can help you.
Substance Abuse and Mental Health Services Administration (SAMHSA) National can provide free referrals. They are open 24/7, 365 days a year.
- Call: (800) 662-Help (4357).
- Visit: SAMHSA’s National online treatment locator
- Text: Your zip code to 435748
If you are experiencing suicidal thoughts, please contact 988 for help. The calls are free, confidential, and they are open 24/7 to help you navigate difficult emotions.
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IRS. (2023). COLA increases for dollar limitations on benefits and contributions. Retrieved from: https://www.irs.gov/retirement-plans/cola-increases-for-dollar-limitations-on-benefits-and-contributions
IRS. (2023). Let us help you. Retrieved from: https://www.irs.gov/help/telephone-assistance
IRS. (2023). Retirement savings contributions credit (saver’s credit). Retrieved from: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit
IRS. (2023). Retirement topics – IRA contribution limits. Retrieved from: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits
O’Shea, A. (2023). Saver’s credit: what it is and how it works. Retrieved from: https://www.nerdwallet.com/article/taxes/can-you-take-the-savers-credit
Parys, S. & Orem, T. (2024). 2023-2024 Tax credits guide: definition, who qualifies. Retrieved from: https://www.nerdwallet.com/article/taxes/what-tax-credits-can-i-qualify-for#Tax%20credits%20for%20people%20with%20kids