Stimulus 2022: You Could Be Eligible for This $2,000 Tax Break

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A little-known tax break offered by the IRS to those with retirement accounts will be expanded in 2022 to include more Americans, and it could help you save up to $2,000 off your tax bill.

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Called the Saver’s Credit (formerly known as the Retirement Savings Contributions Credit), this tax break is available to low- and moderate-income Americans who are saving for retirement. The Saver’s Credit will reduce or even eliminate tax bills for those who qualify, according to the Intuit TurboTax website.

The credit can reduce your tax bill up to $1,000 for individuals and $2,000 for couples. It is offered as another incentive for Americans to save money for retirement — something not nearly enough are doing these days.

Not a lot of taxpayers take advantage of the credit, or are even aware it exists. The good news for 2022 is that the IRS has raised the income range for those who are eligible for the Saver’s Credit, meaning it will be available to more taxpayers.

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If you’re married filing jointly, your adjusted gross income must be $68,000 or less in 2022 to claim the credit, which is up from $66,000 in 2021, Motley Fool reported. If you are filing as head of household, your AGI must be $51,000 or less in 2022, up from $49,500 in 2021. For all other filers, the AGI must be $34,000 or less in 2022, up from $33,000 in 2021.

You are eligible for the Saver’s Credit if you meet one of the following criteria:

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The size of your tax break depends on your income and tax filing status, which will determine whether you claim the Saver’s Credit for 50%, 20% or 10% of the first $2,000 you contribute during the year to a retirement account. For individuals, the maximum credit amounts that can be claimed are $1,000, $400 or $200. For married couples filing jointly, the biggest credit they can claim together is $2,000.

The Saver’s Credit is considered a non-refundable tax credit, meaning it can reduce the tax you owe to zero but won’t provide you with a tax refund. You can claim the credit for contributions to these types of retirement accounts:

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Note that you can’t claim your employer’s contributions to these accounts.

Here’s a look at the rate and AGI eligibility by filing status, according to the IRS website:


Credit Married Filing Jointly 


Head of Household 


All Other Filers 


50% of your contribution $0-$41,000 $0-$30,750 $0-$20,500
20% of your contribution $41,001-$44,000 $30,751-$33,000 $20,501-$22,000
10% of your contribution $44,001-$68,000 $33,001-$51,000 $22,001-$34,000
0% of your contribution Over $68,000 Over $51,000 Over $34,000

To claim the credit, you will need to use Form 8880, Credit for Qualified Retirement Savings Contributions.

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