The Saver’s Credit is also known as the Retirement Savings Contributions Credit.
This credit is an incentive from the IRS to encourage building a retirement savings.
What is the saver’s credit?
The saver’s credit is also known as the retirement savings contributions credit. It is a nonrefundable tax credit for contributions made to a 401k, 403b, or other employer-sponsored retirement plan, Roth IRA, or ABLE account. For single filers the maximum credit is $1,000 and $2,000 for married couples filing jointly.
You must be at least 18 and can’t be a full-time student or a dependent on someone else’s tax return. If you want to apply you must have made contributions to a 401k, 403b, or other employer-sponsored retirement plan. Your adjusted gross income is also taken into account.
This credit could help you lower your tax bill or increase your refund.