Do Your Employees Know about the Saver's Credit?

For taxpayers who are at lower income levels and who contribute to an IRA or other retirement plan, there may be a lucrative tax bonus in the form of the Saver's Credit. There is a catch. Those who qualify must claim it.

The Retirement Savings Contributions Credit – more generally called the Savers' Credit, is a dollar-for-dollar tax credit designed to provide low-income Americans with an incentive to save for their own retirement security.

To be eligible a taxpayer must be at least 18 years old, must not be a full-time student, and not be named as a dependent on someone else's income tax return.

Note: Taxpayers who filed Form 1040EZ cannot claim this credit, but instead, must have filed Form 1040, 1040A or 1040NR.


For tax year 2022, the threshold is as follows:

Taxpayers who are married, filing jointly

Taxpayers who file as head of household

For all other filers

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