Keep more of the income you earn with the Saver’s Tax Credit

You can reduce the amount of tax you pay when you save for retirement by contributing to the Servant Solutions Retirement Plan.  If you’re eligible, the saver’s tax credit may increase your tax refund or decrease the amount you owe.

The Saver’s Credit is a non-refundable tax credit that may be applied up to the first $2,000 of voluntary contributions an eligible worker makes to a 401(k), 403(b) or similar employer-sponsored retirement plan, or a traditional or Roth individual retirement account (IRA). The maximum credit is $1,000 ($2,000 for married couples filing jointly).

Doing taxes for this year? For 2023 (taxes filed in 2024), it can be claimed by:

• Single (or married filing separately) individuals with incomes up to $36,500

• Heads of households with incomes up to $54,750

• Married couples filing jointly with incomes up to $73,000

Planning ahead? For 2024 (taxes filed in 2025), it can be claimed by:

• Single (or married filing separately) individuals with incomes up to $38,250

• Heads of households with incomes up to $57,375

• Married couples filing jointly with incomes up to $76,500

In addition, to be eligible for the credit, you:

• Must be at least 18 years old

• Cannot be claimed as a dependent on someone else’s tax return

• Cannot be a full-time student

In order to claim the saver’s tax credit and calculate the exact amount of your credit, complete Form 8880 with your tax return.

TCRS has created fact sheets, infographics and newsletter articles—in English and Spanish—that are available and encouraged for public use at www.transamericacenter.org/saverscredit. You can also find more information here on the IRS website.