There's Still Time to Claim the Saver's Credit on Your 2023 Tax Return

If you’re still on the hunt for tax breaks, you should look into the Saver’s Credit before you file your tax return. More than half of U.S. workers miss out on this credit because they have no idea it exists, according to the latest Transamerica Center for Retirement Studies survey.

If you qualify, though, you could earn a Saver’s Credit up to $2,000 that could score you a victory on your 2023 tax return. You’ll want to figure out how it works and act fast because you only have a few weeks to jump on this offer.

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Behind the scenes of the 2023 Saver’s Credit

The Saver’s Credit is a special tax benefit that could reduce your tax bill or eliminate it altogether, depending on how much you owe. It’s a nonrefundable credit that’s worth up to $1,000 if you are single or $2,000 if you are married filing jointly. Since the credit is nonrefundable, it can only reduce your tax bill to zero. So if your credit is worth more than your tax bill, you won’t get a refund.

There are a few rules you’ll need to meet to enjoy the benefits of the Saver’s Credit. You must be over 18 years old and you can’t be a full-time student. You also can’t be claimed as a dependent on someone else’s tax return.

The main goal of the Saver’s Credit is to encourage low-and-moderate income taxpayers to set aside money for retirement. So you’ll need to make qualifying contributions to a 401(k), individual retirement account, or other approved account to be in the running for the Saver’s Credit.

Let’s say you are married filing jointly, and your total tax bill comes out to $1,300. Right now, you can still make contributions to a Roth IRA and snag the 2023 Saver’s Contribution if your income isn’t too high. You have until April 15, 2024 to contribute to an IRA for 2023. So if your Roth IRA contributions qualify you for a $2,000 Saver’s Credit, your tax bill will be wiped out. However, you won’t get a tax refund for the $700 that’s leftover since the credit is nonrefundable.

Find out if you’re eligible for a 2023 Saver’s Credit

Getting free money from the IRS is exciting. But of course, you’ll typically need to pass a few tests to qualify. You already know that you have to contribute to a qualified retirement account but you’ll also need to make sure your income falls within the threshold. If you are married filing jointly, for example, you won’t be able to claim the credit if AGI exceeds $73,000 for 2023.

If you qualify for the Saver’s Credit, your credit will be determined by your filing status and adjusted gross income (AGI). You can earn a credit worth 50%, 20%, or 10% of your contributions depending on your situation.

Let’s say you and your spouse are filing a joint return and your combined AGI is $43,000 in 2023. If you contribute $2,000 to a Roth IRA, you qualify for a credit worth 50% of your contributions, which comes out to a $1,000 Saver’s Credit. If you owe the IRS $1,000, your Saver’s Credit will eliminate your tax bill.

Take a look at the income ranges below to see if you’re a candidate for the 2023 Saver’s Credit.

Amount of Your Tax Credit Based on Income and Filing Status

Married Filing Jointly


Head of Household


All Other Filers


50% of your contribution

$0 to $43,500

$0 to $32,625

$0 to $21,750

20% of your contribution

$43,501 to $47,500

$32,626 to $35,625

$21,751 to $23,750

10% of your contribution

$47,501 to $73,000

$35,626 to $54,750

$23,751 to $36,500

0% of your contribution

Over $73,000

Over $54,750

Over $36,500

Data source: IRS.

If you check the box on the Saver’s Credit requirements, you’re steps away from saving money on your 2023 tax return. You can earn a Saver’s Credit based on your contributions to a workplace retirement plan in 2023 or you can make moves now to tuck away money in an IRA before the deadline. Getting a tax credit is a sweet reward, but the real benefit is having more money set aside for the retirement you’ve always dreamed of.

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