Get Up to $2,000 for Contributing to a Roth IRA in 2022

If you’re on the hunt for tax breaks this year, you shouldn’t overlook the Retirement Savings Contributions Credit. It’s also known as the Saver’s Credit and it can be all yours if you set aside money in a Roth IRA (individual retirement account). The credit is designed to encourage low- and moderate-income taxpayers to stash money away for retirement. This hidden tax benefit can save you up to $2,000 on your tax bill in 2022.

If you’ve never heard of the Saver’s Credit, you should do your research now to avoid leaving money on the table. Read on to find out how the credit works and whether you may qualify.

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How the 2022 Saver’s Credit works

The Saver’s Credit is a valuable write-off that can potentially wipe away your tax bill. Single filers can qualify for up to $1,000 in credit. Married filers can double their credit and earn up to $2,000. All you have to do is contribute to a qualified retirement account, like a Roth IRA, and meet the income requirements to claim your credit during tax time.

Let’s say you’re married and filing a tax return with your spouse. If you owe $2,000 and you qualify for the maximum credit amount, your tax bill can instantly fall to zero. The Saver’s Credit can come in handy if you owe money to the IRS at the end of the year.

The Saver’s Credit is a non-refundable credit, so you won’t walk away with a stack of extra cash in your pocket by using this credit. It can only bring your tax liability to zero. Let’s say you and your spouse owe $500 to the IRS, and you qualify for the maximum $2,000 Saver’s Credit. The credit will take care of the $500 tax tab, but you won’t be able to take home the remaining $1,500.

Check your eligibility for the Saver’s Credit in 2022

Although single filers can get up to $1,000 (married filers up to $2,000), not everyone will qualify for the maximum credit amount. Your adjusted gross income (AGI) and filing status will determine if you’re in the running for the Saver’s Credit and how much you’ll get. Fortunately, the income thresholds for the Saver’s Credit were expanded for 2022.

If you’re married filing jointly, you’ll get the highest income threshold. Your AGI can be as high as $68,000 before you’re kicked out of the Saver’s Credit club. Head of household filers can have an AGI up to $51,000. All other filers have to make sure their AGI does not exceed $34,000 if they want to take home the Saver’s Credit in 2022.

2022 Saver’s Credit rate and AGI eligibility, by filing status

After you’ve determined your eligibility, it’s time to see what credit amount you qualify for. The IRS grants taxpayers a credit of 50%, 20%, or 10% of their Roth IRA contribution based on their filing status and AGI.

Let’s say you’re a married couple filing jointly and have an AGI of $40,000. You and your spouse qualify for the 50% of your contribution credit, up to $2,000. If $4,000 was contributed to the Roth IRA, your Saver’s Credit would be $2,000. Even if you contributed $6,000 to your Roth IRA for the year, your 50% credit would be capped at $2,000.

Below is the 2022 Saver’s Credit rate and AGI eligibility by filing status to help you determine how much your credit could be worth.


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 this year and get credit for it

Saving for retirement may not be the most exciting goal to tackle this year, but it can pay off during tax time. If you think you may owe money at the end of the year, you may want to consider adding money to your Roth IRA.

A Roth IRA doesn’t come with an upfront tax deduction, but you can enjoy tax-free income during retirement. However, if you don’t want to wait until retirement to enjoy all your benefits, the Saver’s Credit will give you a chance to instantly reap the rewards of contributing to your retirement account.

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