2017 Saver's Credit Income Limit
For 2017, the Saver's Credit Income Limit is $62,000 (Maximum adjusted gross income, married taxpayers filing a joint return), $46,500 (Maximum adjusted gross income, taxpayers filing as head of household) and $31,000 (Maximum adjusted gross income, all other taxpayers).
| Item | Married taxpayers filing a joint return | Taxpayers filing as head of household | All other taxpayers |
|---|---|---|---|
| Maximum adjusted gross income | $62,000 | $46,500 | $31,000 |
Effective 2017-01-01Source: Notice 2016-62 (IRS)Verified 2026-08-29
Compared with 2016
| Item | 2016 | 2017 | Change |
|---|---|---|---|
| Maximum adjusted gross income, married taxpayers filing a joint return | $61,500 | $62,000 | +$500 (+0.8%) |
| Maximum adjusted gross income, taxpayers filing as head of household | $46,125 | $46,500 | +$375 (+0.8%) |
| Maximum adjusted gross income, all other taxpayers | $30,750 | $31,000 | +$250 (+0.8%) |
Who it applies to
Taxpayers who contributed to a retirement plan or IRA and want to determine whether they qualify for the retirement savings contributions credit (Saver's Credit) for 2017 based on their adjusted gross income.
What changed this year, and why
For 2017, the maximum adjusted gross income a taxpayer may have to claim the retirement savings contributions credit (Saver's Credit) is $62,000 for married taxpayers filing a joint return, $46,500 for taxpayers filing as head of household, and $31,000 for all other taxpayers. These limits determine the income thresholds below which eligible taxpayers may receive the credit.
Common questions
- Who qualifies for the Saver's Credit based on income?
- You must have an adjusted gross income of $62,000 or less if married filing jointly, $46,500 or less if filing as head of household, or $31,000 or less for all other filing statuses.
Three things that disqualify you even under the income limit
Even if your income is below the limit, you cannot claim the Saver's Credit if any of these three conditions apply to the person who made the qualified retirement contribution or elective deferral. First, that person must not have been born after January 1, 2000, meaning the credit is unavailable to very young taxpayers. Second, the person cannot be claimed as a dependent on someone else's 2017 tax return. Third, the person cannot have been a student during the year. These disqualifications apply to you, your spouse, or both, depending on who made the contribution. If either you or your spouse meets any of these conditions, neither of you can claim the credit for that contribution.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2000, (b) is claimed as a dependent on someone else’s 2017 tax return, or (c) was a student (see instructions).
Form 8880 (2017), Credit for Qualified Retirement Savings Contributions (IRS)
The credit rate falls in steps as income rises
The Saver's Credit rate is not fixed; it falls in steps as your adjusted gross income rises. The form instructs you to enter the applicable decimal amount based on your income range and filing status. For married taxpayers filing jointly, the rate starts at .5 for income up to $37,000, drops to .2 for income between $37,000 and $40,000, falls to .1 for income between $40,000 and $46,500, and becomes .0 for income above $62,000. For head of household filers, the rate is .5 up to $27,750, .2 from $27,750 to $30,000, .1 from $30,000 to $46,500, and .0 above that. For single filers, the rate is .5 up to $18,500, .2 from $18,500 to $20,000, .1 from $20,000 to $31,000, and .0 above $31,000. This tiered structure means that even small increases in income can reduce your credit rate, and once your income exceeds the maximum limit, your rate drops to zero and you cannot claim the credit at all.
9 Enter the applicable decimal amount shown below. If line 8 is— Over— But not over— And your filing status is— Married filing jointly Head of household Single, Married filing separately, or Qualifying widow(er)Enter on line 9— --- $18,500 .5 .5 .5 $18,500 $20,000 .5 .5 .2 $20,000 $27,750 .5 .5 .1 $27,750 $30,000 .5 .2 .1 $30,000 $31,000 .5 .1 .1 $31,000 $37,000 .5 .1 .0 $37,000 $40,000 .2 .1 .0 $40,000 $46,500 .1 .1 .0 $46,500 $62,000 .1 .0 .0
Form 8880 (2017), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
When calculating the Saver's Credit, you add your IRA contributions and your elective deferrals to employer plans on lines 1 and 2 of the form, then subtract certain recent distributions on line 4. The result on line 5 is your adjusted contributions. However, the credit is based on only a limited amount of those contributions. Line 6 instructs you to enter the smaller of line 5 or $2,000 in each column. This means that regardless of how much you actually contributed to your retirement accounts during the year, the credit calculation uses at most $2,000 of those contributions per person. For married couples filing jointly, each spouse has their own column with a $2,000 limit. If your adjusted contributions on line 5 are less than $2,000, you use that smaller figure instead. After determining this amount, you add both columns together on line 7, and if the total is zero, you cannot take the credit at all.
6 In each column, enter the smaller of line 5 or $2,000 . . . . . . 6
Form 8880 (2017), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
If you received a distribution from a retirement account after 2014 and before the due date (including extensions) of your 2017 tax return, that withdrawal reduces the contributions that count toward the Saver's Credit. The form requires you to report these distributions on line 4 and subtract them from your total contributions on line 3. For married couples filing jointly, both spouses' distribution amounts are included. This rule prevents taxpayers from making contributions simply to claim the credit while simultaneously withdrawing funds from retirement accounts. There is an exception noted in the instructions for certain cases. After subtracting these distributions, if the result is zero or less, you enter zero on line 5, and you cannot claim the credit. The subtraction ensures that only net new savings during the year qualify for the credit, not money that was simply moved in and out of retirement accounts.
4 Certain distributions received after 2014 and before the due date (including extensions) of your 2017 tax return (see instructions). If married filing jointly, include both spouses’ amounts in both columns. See instructions for an exception . . . . . . . . . . . . . 4
Form 8880 (2017), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit you calculate based on your contributions and the applicable rate cannot exceed your actual tax liability for the year. Line 11 of the form requires you to enter the amount from the Credit Limit Worksheet in the instructions, which computes the maximum credit you can claim based on your tax. This worksheet determines how much tax you owe after accounting for other credits and limitations. The final credit amount on line 12 is the smaller of your calculated credit on line 10 or the limitation amount on line 11. This limitation ensures that the Saver's Credit functions as a nonrefundable credit, meaning it can reduce your tax to zero but cannot create a refund on its own. Any unused portion of the credit is lost and cannot be carried forward to future years. The credit is designed to supplement your tax liability, not to exceed it.
11 Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Form 8880 (2017), Credit for Qualified Retirement Savings Contributions (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2016-62 (IRS)
- Maximum adjusted gross income, married taxpayers filing a joint return
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return remains unchanged at $37,000; the limitation under § 25B(b)(1)(B) remains unchanged at $40,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $61,500 to $62,000.
- Maximum adjusted gross income, taxpayers filing as head of household
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household remains unchanged at $27,750; the limitation under § 25B(b)(1)(B) remains unchanged at $30,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $46,125 to $46,500.
- Maximum adjusted gross income, all other taxpayers
The adjusted gross income limitation under § 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers remains unchanged at $18,500; the limitation under § 25B(b)(1)(B) remains unchanged at $20,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $30,750 to $31,000.