Saver's Credit for 2026: the income limits, the last year it covers IRA and 401(k) contributions, and Form 8880 in tax software
The Saver's Credit lowers the federal tax of low- and moderate-income people who put money into a retirement plan, an IRA or an ABLE account. As of October 31, 2026 (Eastern time):
- 2026 is the last year it covers retirement contributions. The IRS's notice: “For taxable years beginning after December 31, 2026, Saver's Match contributions replace the Retirement Savings Contributions Credit (Saver's Credit) under section 25B with respect to elective contributions to qualifying retirement plans and IRAs.” ABLE account contributions keep the credit.
- The 2026 income limits are $80,500 for joint filers, $60,375 for heads of household and $40,250 for others, with the 50% rate up to $48,500, $36,375 and $24,250 (table).
- The most it can be: “The maximum contribution amount that may qualify for the credit is $2,000 ($4,000 if married filing jointly), making the maximum credit $1,000 ($2,000 if married filing jointly).” It cannot exceed your tax, because it is nonrefundable.
- You claim it on Form 8880. TurboTax's free version does not include that form; FreeTaxUSA lists it (details).
2026 income limits
| Filing status | Credit 50% | Credit 20% | Credit 10% | No credit |
|---|---|---|---|---|
| Married filing jointly | $48,500 or less | $48,501–$52,500 | $52,501–$80,500 | Over $80,500 |
| Head of household | $36,375 or less | $36,376–$39,375 | $39,376–$60,375 | Over $60,375 |
| Single, married filing separately, qualifying surviving spouse | $24,250 or less | $24,251–$26,250 | $26,251–$40,250 | Over $40,250 |
Who can claim it
The IRS: “You're eligible for the credit if you're:” “Age 18 or older,” “Not claimed as a dependent on another person’s return, and” “Not a student.” The credit is 50%, 20% or 10% of contributions to a traditional or Roth IRA, “elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan,” voluntary after-tax contributions to a qualified plan or 403(b) plan, and ABLE contributions if you are the beneficiary. “Rollover contributions do not qualify for the credit.” “Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA, or from an ABLE account.”
An example
A single filer with adjusted gross income of $24,000 puts $2,000 into an IRA for 2026. That AGI is under $24,250, so the rate is 50%: $1,000. If the filer's federal income tax before credits is $600, the credit stops at $600, because it cannot exceed the tax. The Saver's Match that follows from 2027 is different: the IRS's notice describes the Saver's Credit as “a nonrefundable tax credit that cannot exceed the amount of an individual's tax liability”, while the match is a deposit into a retirement account.
What changes in 2027
- The IRS's Saver's Match page: “For the 2027 tax year, the Saver's Match replaces the Saver's Credit for eligible retirement contributions.” “However, if you make eligible contributions to an ABLE account, you may still be able to claim the Saver's Credit.”
- Forms: the match is claimed on a new Form 8880-A, and the notice says that for ABLE contributions “the Saver's Credit would continue to be claimed on Form 8880, Credit for Qualified Retirement Savings Contributions”.
- The match has its own, different income limits and goes into the account; see Saver's Match 2027.
Sources: IRS Notice 2026-48, Saver's Match (PDF); IRS, Saver's Match.
Form 8880 in tax software
- TurboTax: its Free Edition forms table lists “Form 8880 Credit for Qualified Retirement Savings Contributions” as “Not included in Free Edition” and included in Deluxe and Premium.
- FreeTaxUSA: its supported-forms page lists “Form 8880”, and its pricing page lists “Retirement Savings Contribution Credit (Form 8880)”; its federal return is free.
- H&R Block and TaxAct: the product pages we read do not mention Form 8880 either way.
For what the free versions take besides this, see free tax filing with dividends and FreeTaxUSA vs TaxAct vs TurboTax.
Sources: TurboTax, Free Edition forms table; FreeTaxUSA, Supported tax forms.
Quick answers
Is 2026 the last year for the Saver's Credit?
For contributions to retirement plans and IRAs, yes: from the 2027 tax year the Saver's Match replaces it. For ABLE account contributions the credit continues.
What is the Saver's Credit income limit for 2026?
$80,500 of adjusted gross income for married couples filing jointly, $60,375 for heads of household and $40,250 for everyone else. The 50% rate applies up to $48,500, $36,375 and $24,250.
Can the Saver's Credit give me a refund?
No. It can bring your federal income tax down to zero but not below.
Does a Roth IRA contribution count?
Yes. The IRS lists contributions to a traditional or Roth IRA. (Under the Saver's Match from 2027, the match itself cannot go straight into a Roth IRA; that is a different rule.)
How we checked
- Limits from IRS Notice 2025-67 and the IRS's news release; eligibility and amounts from the IRS's Saver's Credit page; the 2027 change from IRS Notice 2026-48 and the IRS's Saver's Match page; all read October 31, 2026.
- The tax programs' pages as listed. We did not prepare returns in them.
What this page does not cover
- Which account or program to choose.
- State credits for retirement saving.
Rechecks and changes
We will read the IRS's pages again when it publishes the 2026 Form 8880 and its instructions.
- . First published.
Sources: IRS, Retirement Savings Contributions Credit (Saver's Credit); IRS Notice 2025-67 (PDF); IRS news release IR-2025-111 (2026 limits); IRS Notice 2026-48, Saver's Match (PDF); IRS, Saver's Match; TurboTax, Free Edition forms table; FreeTaxUSA, Supported tax forms. This page contains no affiliate links. It is not tax advice.