--- title: Do Your Employees Know about the Saver's Credit? description: 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... image: https://blog.portebrown.com/hubfs/980x411%20-%20Savers%20Credit.jpg --- [![Porte Brown logo](https://blog.portebrown.com/hubfs/PB%20Logo%20-%20Web%20400dpi%20--%20LARGE-HighRes-01.svg "Porte Brown logo")](https://portebrown-6854056.hs-sites.com/) [![Porte Brown logo](https://blog.portebrown.com/hubfs/PB%20Logo%20-%20Web%20400dpi%20--%20LARGE-HighRes-01.svg "Porte Brown logo")](https://portebrown-6854056.hs-sites.com/) Search # Do Your Employees Know about the Saver's Credit? ![calendar-icon](https://cdn2.hubspot.net/hubfs/2040891/Marketplace/WASABI/icons/icon-calendar.svg) * By [ Porte Brown ](https://blog.portebrown.com/author/porte-brown-llc) - August 31, 2022 * **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**](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-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. ## Limits For tax year 2022, the threshold is as follows: Taxpayers who are married, filing jointly - With adjusted gross income of $41,000 or less the credit is 50%. (Up from  $39,500 in 2021.) - With adjusted gross income of $41,001 to $44,000, the credit is 20%. (Up from $39,501 to $43,000 in 2021.) - With adjusted gross income of at least $44,001 up to $68,000, the credit is 10%.  (Up from $43,001 to $66,000 in 2021.) - The credit phases out completely for those with adjusted gross incomes exceeding $68,000. ($66,000 in 2021.) Taxpayers who file as head of household - With adjusted gross income of $30,750 or less, the credit is 50%. (Up from $29,625 in 2021) - With adjusted gross income of $30,751 to $33,000, the credit is 20%. (Up from $29,626 to $32,250 in  2021). - With adjusted gross income of $33,301 to $51,000, the credit is 10%. (Up from $32,251 to $49,500 in 2021). - The credit phases out completely for those with adjusted gross incomes exceeding $51,000. (up from $49,500 in 2021). For all other filers - With adjusted gross income of $20,500 or less, the credit is 50%. (Up from $19,750 in 2021.) - With adjusted gross income of $20,501 to $22,000, the credit is 20%. (Up from $19,751 to $21,500 in 2021.) - With adjusted gross income of $22,001 to $34,000, the credit is 10%. (Up from $21,501 to $33,000 in 2021) - The credit phases out completely for those with adjusted gross incomes exceeding $34,000. ($33,000 in 2021.) [![Sales director presenting business plan to team](https://blog.portebrown.com/hubfs/Stock%20images/Sales%20director%20presenting%20business%20plan%20to%20team.jpeg "Sales director presenting business plan to team")](https://www.portebrown.com/services/accounting-services) #### SERVICE SPOTLIGHT ### Outsourced Accounting & Advisory Services We'll build a customized accounting package for your business based upon current needs and anticipated growth. We can do all of the work for you, or simply assist your in-house staff... 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