Unlock Up to $2,000: IRS Tax Credits Await Those Who Qualify!

Get ready, folks! The 2025 tax season is just around the corner, and here’s some exciting news that could put a little extra cash in your pocket. The IRS is rolling out some fantastic tax credits for eligible taxpayers—up to a whopping $2,000! If you file your tax return for 2024, expect to see those refunds hitting your bank account by late January. The IRS has a whole toolbox of credits and deductions each year to help you reduce your tax burden or amplify your refund. One standout opportunity? The Saver’s Credit, which rewards you for socking away money in retirement savings accounts.

Unlock Tax Credits Up to $2,000: Are You Eligible?

If you’ve been making contributions to your employer-sponsored retirement plan or an individual retirement account (IRA), you might just qualify for that sweet tax credit. Plus, if you’re the designated beneficiary, contributions to an Achieving a Better Life Experience (ABLE) account could also propel you toward eligibility. So, what do you need to know? Here are the basic qualifications for the Saver’s Credit:

• You must be at least 18 years old.
• You cannot be claimed as a dependent on someone else’s tax return, and you can’t be a full-time student.

The amount of credit you can snag is determined by your adjusted gross income as reported on your Form 1040. Depending on your income level, you could get back 10%, 20%, or even 50% of the following types of contributions:

• Contributions to traditional or Roth IRAs
• Salary deferrals to a section 401(k), 403(b), governmental section 457(b), SARSEP, or SIMPLE plan
• After-tax contributions to a qualified retirement plan, including the Thrift Savings Plan
• Contributions to Section 501(c)(18)(D) plans
• Contributions to an ABLE account if you’re the intended beneficiary (from 2018 onward)

Just a heads-up: rollover contributions don’t count towards this credit. Additionally, any recent withdrawals from your ABLE account, IRA, or retirement plan may reduce your eligible contributions. The maximum credit you can receive is $1,000 ($2,000 for married couples filing jointly), so aim for those maximum contribution limits of $2,000 ($4,000 for married couples filing jointly). Don’t forget, to claim the Saver’s Credit, you’ll need to file Form 8880, Credit for Qualified Retirement Savings Contributions, alongside your Form 1040.

How Much Can You Earn with the Saver’s Credit in 2024?

The IRS is set to reward taxpayers with varying credit rates based on their contributions in 2024. Check out the breakdown:

Credit Rate	Married Filing Jointly	Head of Household	All Other Filers*
50% of Your Contribution	Adjusted gross income under $46,000	Adjusted gross income under $34,500	Adjusted gross income under $23,000
20% of Your Contribution	$46,001 – $50,000	$34,501 – $37,500	$23,001 – $25,000
10% of Your Contribution	$50,001 – $76,500	$37,501 – $57,375	$25,001 – $38,250
0% of Your Contribution	Above $76,500	Above $57,375	Above $38,250

Don’t Miss Out: Key Contribution Deadlines!

If you hold an IRA, you’ve got until April 15, 2024—the deadline for filing your 2023 tax return—to either open a new IRA or contribute to an existing one for the 2023 tax year. Both Traditional and Roth IRAs qualify. If you’ve got an employment retirement plan, you still have time to make those critical retirement contributions and snag the Saver’s Credit as well. Just remember, contributions to retirement plans that are elective deferrals need to be in by December 31 to qualify for:

• 401(k) plans.
• 403(b) plans for public school employees and certain tax-exempt organizations.
• Governmental 457 plans for state and local government employees.
• Thrift Savings Plan (TSP) for federal employees.

Keep in mind: If your adjusted gross income exceeds any of these thresholds, you won’t qualify for the Saver’s Credit: