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This tax break can save you up to $2,000

Americans struggling from COVID-19 related hardships could save themselves $2,000 with a tax break.

In order to claim it, you must have a retirement account and it can be claimed in the 2022 fiscal year.

Eligible Americans can claim this tax credit called the Saver’s Credit.

Related: How are filing taxes and tax brackets changing for married couples in 2022?

The credit is available to low and moderate income families and also works as an incentive to help save for retirement.

TurboTax claims is can cut tax bills by up to $1,000 for single taxpayers and $2,000 for married filers.

To qualify, married couples need an AGI no higher than $68,000 in 2022. Head of household can’t be over $51,000, and single filers can’t make over $34,000.

You must be over 18, not be a student, claiming yourself, and making your retirement contribution.

This is a non-refundable tax credit, meaning it can reduce what you owe but you won’t get a refund from it.

Related: Some parents who received child tax credits this week might need to pay the IRS back

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