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Saver’s credit could give you a $2,000 free tax break in 2022

Many Americans are asking for another stimulus check and they still struggle with the impact of the pandemic.

Fortunately, the IRS has changed some rules and the often forgotten $2,000 saver’s credit may give Americans a break in 2022.

The saver’s credit was formerly known as the retirement savings contribution credit.

Related: When will I get my 2022 tax refund?

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Now, eligibility has been expanded and taxpayers that are married and contributing to their 401ks and IRAs could qualify.

Only 43% of working Americans were aware of this credit, according to a report released by the Transamerica Center for Retirement Studies.

403bs and 457bs also qualify for the credit.

In 2022 the credit will be worth $1,000 for single filers and $2,000 for married filers.

Related: Millions of tax returns, tax refunds remain unprocessed: Can you file 2021 taxes this spring if the IRS owes you money?

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In order to be eligible, the head of household filer needs an adjusted gross income of $51,000 or less.

If married filing jointly, the AGI cannot exceed $68,000.

Anyone else can’t exceed $34,000.

Related: Claim $1,500 tax break just for working from home


In 2019 it was reported that half of the workers in the United States made less than $35,000.

If you make less than the AGI while contributing to a retirement account, this tax break may work for you.

Eligibility limits increased this year from what they were in 2020.



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