A tax credit, not a contribution deduction
The Saver’s Credit applies a 50%, 20% or 10% rate to qualifying retirement contributions after required distribution reductions, capped at $2,000 per eligible person. Its maximum is $1,000 per person, or $2,000 on a joint return with two eligible contributors. It is nonrefundable: the final amount cannot exceed income-tax liability available for this credit.
For each person, confirm age 18 or older, not claimed as a dependent, and not a full-time student. The full-time-student test includes any part of five calendar months during the year under the Form 8880 rules. A spouse can qualify even when the other spouse does not. The contribution limit is not pooled between spouses.
2026 AGI rate table
| Rate | MFJ AGI | Head of household AGI | All other statuses AGI |
|---|---|---|---|
| 50% | Up to $48,500 | Up to $36,375 | Up to $24,250 |
| 20% | $48,501–$52,500 | $36,376–$39,375 | $24,251–$26,250 |
| 10% | $52,501–$80,500 | $39,376–$60,375 | $26,251–$40,250 |
| 0% | Above $80,500 | Above $60,375 | Above $40,250 |
Thresholds include the upper endpoint. Married filing separately and qualifying surviving spouse use the “all other” table, not the joint table. Use adjusted gross income, not gross salary. If claiming foreign-earned-income, foreign-housing, Puerto Rico or American Samoa exclusions or deductions, first refigure the AGI amount under Publication 590-A as directed by Form 8880. This tool does not compute that refiguring or ABLE-account eligibility. The 2026 thresholds come from IRS Notice 2025-67; the currently linked final Form 8880 is the 2025 form and supplies the mechanics, not the 2026 threshold amounts.
Work each spouse’s column before applying the rate
A joint couple with $40,000 AGI, one spouse contributing $4,000 and the other $0, has only $2,000 of capped contributions: the gross credit is $1,000, not $2,000. With $2,000 from each eligible spouse, the gross credit becomes $2,000. If only $300 of tax remains available, either calculation is capped at $300.
Enter qualifying IRA contributions and qualifying employee retirement-plan contributions, including Roth contributions where eligible. Do not include employer match or rollovers. Apply the distribution reduction first, then cap each person’s remainder at $2,000. For example, contributions of $2,500 and $2,000 with reductions of $1,000 in each spouse’s column produce $1,500 + $1,000 of eligible amounts and a $1,250 gross credit at 50%.
Distribution lookback and the nonrefundable cap
For a 2026 credit, the rolling distribution period starts after 2023 and extends through the due date, including extensions, of the 2026 return. Form 8880 has exceptions for particular distributions. On joint returns, some spouse distributions affect both columns; the treatment can differ when you did not file jointly in the year of the distribution.
The two distribution inputs are therefore the reductions already assigned to each Form 8880 column, not a promise to classify raw withdrawals automatically. Consult the form instructions before entering them. The tax input likewise represents the credit-limit worksheet amount available after other applicable credits, not your unadjusted total tax. This estimator does not rebuild the whole Form 1040 credit ordering.
These are the 2026 Saver’s Credit rules. The future Saver’s Match is a separate program; it is not added to this credit estimate.
Official sources
Rules rechecked October 4, 2026. Source versions and calculation scope are stated above.