Tax season is underway, but you still have time to make some moves that can reduce your tax bill. There's a little-known tax benefit called the Saver's Credit that can help you unlock up to $2,000 this year if you contribute to a qualifying retirement account like a Roth IRA (individual retirement account).

We'll dive into the requirements below so you can determine if you qualify.

Young couple looking at finances in kitchen.

Image source: Getty Images.

Don't miss out on the 2022 Saver's Credit 

If you're on the hunt for ways to save money on your tax bill, the Saver's Credit might do the trick. It's a tax credit available to qualified low- and moderate-income savers who contribute to certain retirement accounts. You can get a credit worth up to $1,000 if you're single or $2,000 if you are married filing jointly. 

There are two flavors of credits: refundable and nonrefundable. The Saver's Credit falls in the nonrefundable bucket. That means this credit won't leave you with a tax refund. It can only drop your tax bill to zero. 

Let's say you are married filing jointly, and your total tax bill is $1,200. If you qualify for a $2,000 Saver's Credit, your tax bill will be paid in full. However, you won't get a tax refund of $800 since the credit is nonrefundable.

A Roth IRA gets you one step closer to the Saver's Credit 

You won't be in the running for the Saver's Credit unless you contribute to a qualified retirement account like a Roth IRA. You can set up a Roth IRA on your own and contribute after-tax dollars to fund the account. When you reach 59 1/2 and have met the five-year rule, you can enjoy tax-free withdrawals. There won't be any pressure to take money out of your account after a certain age because required minimum distributions don't apply to Roth IRAs. 

If you are thinking about contributing money to a 2022 Roth IRA, you'll have until the tax deadline to make your decision. Determine if you meet the income requirements and develop your contribution goals. For 2022, you can contribute up to $6,000 if you are under 50 and $7,000 if you are 50 and over to a Roth IRA.

Calculate your potential Saver's Credit perks 

You can estimate the amount of your Saver's Credit in advance so you can get excited about contributing to a retirement account. There are three categories of credits you may qualify for: 50%, 20%, and 10%. Your maximum Saver's Credit will depend on your filing status and adjusted gross income (AGI) for the year. 

Let's say you are married and file a joint return with your spouse. Your combined AGI is $40,000, and you contribute $2,000 to a Roth IRA. You can claim a 50% credit of $1,000 for your $2,000 IRA contribution on your 2022 tax return. 

Find out if you qualify for the 2022 Saver's Credit and how much it may be worth by looking at the AGI thresholds for your filing status. You have to be 18 or older to claim the Saver's Credit. You also can't be a student or claimed as a dependent on someone else's tax return. 

Amount of Your Tax Credit Based on Income and Filing Status for 2022

Married Filing Jointly 


Head of Household 


All Other Filers


50% of your contribution 

$0 to $41,000

$0 to $30,750

$0 to $20,500

20% of your contribution 

$41,001 to $44,000

$30,751 to $33,000

$20,501 to $22,000

10% of your contribution

$44,001 to $68,000

$33,001 to $51,000

$22,001 to $34,000

0% of your contribution

Over $68,000

Over $51,000

Over $34,000

Data source: IRS.

Save more money this tax season 

If you're worried about owing the IRS, see if you qualify for the Saver's Credit. It can help you reduce your tax bill so you can allocate more money toward your future goals. Even if you don't qualify for or need the Saver's Credit, you can always benefit from saving more money in your retirement account to help you get closer to your long-term goals.