Find out whether your retirement contributions earn a 50%, 20%, or 10% tax credit — and how far you are from the income ceiling that takes it away.
| Scenario | Filing Status | AGI | Rate | Credit |
|---|---|---|---|---|
| Single saver, $2,000 contributed | Single | $22,000 | 50% | $1,000 |
| Married couple, $6,000 contributed | Joint | $45,000 | 50% | $2,000 |
| Married couple, $4,000 contributed | Joint | $49,000 | 20% | $800 |
| Married couple, $3,000 contributed | Joint | $60,000 | 10% | $300 |
| Married couple, phased out | Joint | $85,000 | 0% | $0 |
Note how the joint cap doubles to $4,000 while the eligibility ceiling is much higher. A married couple can earn more than twice what a single filer can and still collect the credit — but only if they actually contribute to a retirement account.
| Credit Rate | Married Filing Jointly | Head of Household | Single / MFS |
|---|---|---|---|
| 50% | Up to $47,500 | Up to $35,625 | Up to $23,750 |
| 20% | $47,501 - $51,000 | $35,626 - $38,250 | $23,751 - $25,500 |
| 10% | $51,001 - $76,500 | $38,251 - $57,375 | $25,501 - $38,250 |
| 0% | Over $76,500 | Over $57,375 | Over $38,250 |
The contribution cap is $2,000 per person ($4,000 for a joint return), and it applies to the total of 401(k), 403(b), governmental 457(b), SIMPLE, SEP, traditional IRA, Roth IRA, and ABLE contributions. Rolling the same money into multiple accounts does not multiply the cap.
The Saver's Credit — formally the Retirement Savings Contributions Credit, line 4 of Schedule 3 — is one of the most under-claimed credits in the tax code. IRS estimates suggest only a fraction of eligible households claim it, because it requires both a modest income and a retirement contribution, and it is not advertised by tax software.
The credit is non-refundable. It reduces the tax you owe dollar for dollar, but it cannot produce a refund beyond your liability. If your liability is only $400 and the credit is $1,000, you use $400 and lose the remainder. This is why the credit is most valuable for someone with a real tax bill — a young worker with a $900 liability gets the full benefit, while someone already at zero tax gets nothing.
| Disqualifier | Detail |
|---|---|
| Dependent status | You are claimed as a dependent on someone else's return |
| Full-time student | Enrolled full time for 5 or more months of the year |
| Age under 18 | You must be at least 18 at year-end |
| Income above the ceiling | AGI over $38,250 single or $76,500 joint, for the 10% tier |
| Non-qualified withdrawals | Distributions from retirement accounts in the testing period reduce the contribution base |
The withdrawal rule deserves emphasis. Distributions taken from any retirement plan in the current year, the two prior years, or the following year reduce your eligible contributions — in part or in full — for the credit. A withdrawal that would otherwise pay for a car can quietly eliminate a $2,000 credit, so time distributions carefully.
⚠️ Important: This calculator estimates the Saver's Credit using 2025 AGI thresholds and the statutory contribution cap. It applies a simplified treatment of the withdrawal-reduction rule and does not account for the ordering of multiple credits, the alternative minimum tax, contributions to a spouse's account when only one spouse has income, or state-level matching credits. This is not tax, legal, or accounting advice - consult a qualified tax professional about your specific situation.