{"id":15129,"date":"2017-01-17T07:00:34","date_gmt":"2017-01-17T13:00:34","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=15129"},"modified":"2020-09-29T17:11:46","modified_gmt":"2020-09-29T22:11:46","slug":"what-is-the-savers-credit","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/filing\/credits\/what-is-the-savers-credit\/","title":{"rendered":"What is the Saver\u2019s Credit?"},"content":{"rendered":"

Editor\u2019s Note:<\/em><\/strong> This post discusses the Saver\u2019s Credit, a special tax break to low- and moderate-income American taxpayers saving for retirement. Remember:\u00a0You can\u2019t file Form 8880 using a 1040EZ, so it\u2019s important to consult an expert to make sure you are eligible for the credit.<\/em><\/p>\n

The Retirement Savings Contributions Credit<\/a> or \u201cSaver\u2019s Credit\u201d allows you to save money for your retirement, while also offering a tax credit, thus reducing \u2013 or in some cases even eliminating \u2013 your overall tax amount owed. It is a non-refundable credit, meaning it can reduce the tax you owe to zero, but it can’t provide you with a tax refund. You can\u2019t file Form 8880 using a 1040EZ, so it\u2019s important to consult an expert to make sure you are eligible for the credit. To help determine eligibility, use the help of a tax professional at H&R Block.<\/p>\n

Many people don’t take advantage of the credit simply because they don\u2019t know anything about it. In fact, a recent survey conducted by Transamerica Center for Retirement Studies<\/a> revealed just one quarter of Americans with an annual household income of less than $50,000 are aware of the credit.<\/p>\n

Save for Retirement Through the Saver\u2019s Credit<\/strong><\/h2>\n

This credit offers an incentive to build a nest egg you can use upon retirement. With the Saver\u2019s Credit, you can offset part of the first $2,000 you contribute to your retirement plan ($4,000 if you file jointly with your spouse) through:<\/p>\n