2018 Saver's Credit Income Limit
For 2018, the Saver's Credit Income Limit is $63,000 (Maximum adjusted gross income, married taxpayers filing a joint return), $47,250 (Maximum adjusted gross income, taxpayers filing as head of household) and $31,500 (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 | $63,000 | $47,250 | $31,500 |
Effective 2018-01-01Source: Notice 2017-64 (IRS)Verified 2026-08-29
Compared with 2017
| Item | 2017 | 2018 | Change |
|---|---|---|---|
| Maximum adjusted gross income, married taxpayers filing a joint return | $62,000 | $63,000 | +$1,000 (+1.6%) |
| Maximum adjusted gross income, taxpayers filing as head of household | $46,500 | $47,250 | +$750 (+1.6%) |
| Maximum adjusted gross income, all other taxpayers | $31,000 | $31,500 | +$500 (+1.6%) |
Who it applies to
Taxpayers claiming the Retirement Savings Contributions Credit (Saver’s Credit) for the 2018 tax year.
What changed this year, and why
For 2018, the maximum adjusted gross income limits for the Retirement Savings Contributions Credit (Saver’s Credit) are $63,000 for married taxpayers filing a joint return, $47,250 for taxpayers filing as head of household, and $31,500 for all other taxpayers.
Common questions
- What are the income limits for the Saver's Credit in 2018?
- For 2018, the maximum adjusted gross income to qualify for the Saver's Credit is $63,000 for married taxpayers filing jointly, $47,250 for heads of household, and $31,500 for all other taxpayers.
Three things that disqualify you even under the income limit
Even if your adjusted gross income is within the limit, you are barred from claiming the Saver's Credit if any one of three conditions applies to the person who made the retirement contribution. That person must not have been born after January 1, 2001, must not be claimed as a dependent on another taxpayer's 2018 return, and must not have been a student during any part of five calendar months in 2018. Being a student includes enrollment as a full-time student at a technical, trade, or mechanical school, or taking a full-time, on-farm training course offered by a school or government agency. It does not include on-the-job training, correspondence schools, or internet-only courses. These disqualifications apply to each individual who made a contribution; on a joint return, the credit is unavailable if either spouse meets any of the three tests.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2001; (b) is claimed as a dependent on someone else’s 2018 tax return; or (c) was a student (see instructions).
Form 8880 (2018), 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 credit equals your qualifying contributions multiplied by a decimal rate that depends on your income and filing status. At the lowest income levels, the rate is 0.5, meaning you receive a credit equal to half your contributions. As income increases, the rate drops to 0.2, then to 0.1, and finally to 0.0 when income exceeds the maximum limit. The specific income ranges where the rate changes vary by filing status: married couples filing jointly have wider ranges than single filers or heads of household. For example, a single filer gets the 0.5 rate when income is up to $19,000, but the rate drops to 0.2 for income over $19,000 but not over $20,500, then to 0.1 for income over $20,500 but not over $31,500. Once income exceeds $31,500 for single filers, the credit rate becomes 0.0 and no credit is available. The same tiered structure applies to other filing statuses with different threshold amounts.
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 Enter on line 9— Single, Married filing separately, or Qualifying widow(er) --- $19,000 0.5 0.5 0.5 $19,000 $20,500 0.5 0.5 0.2 $20,500 $28,500 0.5 0.5 0.1 $28,500 $30,750 0.5 0.2 0.1 $30,750 $31,500 0.5 0.1 0.1 $31,500 $38,000 0.5 0.1 0.0 $38,000 $41,000 0.2 0.1 0.0 $41,000 $47,250 0.1 0.1 0.0 $47,250 $63,000 0.1 0.0 0.0 $63,000 --- 0.0 0.0 0.0 Note: If line 9 is zero, stop; you can’t take this credit.
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
The Saver's Credit is based on your retirement contributions, but the amount that counts is capped. Line 6 of Form 8880 instructs you to enter the smaller of your net contributions (line 5) or $2,000 in each column. This means that regardless of how much you actually contributed, only $2,000 per person can be used to figure the credit. If your net contributions exceed $2,000, the excess is simply ignored. If your net contributions are less than $2,000, you use the actual smaller amount. On a joint return, the form has separate columns for you and your spouse, so each spouse has their own $2,000 limit applied independently. The $2,000 cap applies to the combined total of IRA contributions, elective deferrals to employer plans, and other eligible contributions, after subtracting any recent distributions required on line 4.
6 In each column, enter the smaller of line 5 or $2,000 . . . . . . 6
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
If you received distributions from a retirement plan or IRA after 2015 and before the due date of your 2018 tax return, those withdrawals reduce the contributions eligible for the Saver's Credit. The form requires you to enter the total of such distributions on line 4, which is then subtracted from your 2018 contributions on line 5. If the result is zero or less, you enter zero, meaning no contributions count toward the credit. This rule prevents taxpayers from claiming a credit for new contributions while simultaneously withdrawing funds from retirement accounts. For married couples filing jointly, both spouses' distributions must be included in the calculation, and the reduction applies to the combined contributions.
4 Certain distributions received after 2015 and before the due date (including extensions) of your 2018 tax return (see instructions). If married filing jointly, include both spouses’ amounts in both columns. See instructions for an exception . . . . . . . . . . . . . 4
Form 8880 (2018), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit is nonrefundable, which means it cannot exceed the total tax you owe for the year. After calculating the preliminary credit amount by multiplying your qualifying contributions by the applicable decimal rate, you must compare that figure to your tax liability. The form instructs you to enter the amount from the Credit Limit Worksheet in the instructions on line 11, which represents the maximum credit allowed based on your tax. The final credit you claim on line 12 is the smaller of the preliminary calculation or this tax-based limitation. If your tax liability is zero or very low, you may receive little or no benefit from the credit even if your income and contributions would otherwise qualify you for a substantial amount.
11 Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Form 8880 (2018), 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 2017-64 (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 is increased from $37,000 to $38,000; the limitation under § 25B(b)(1)(B) is increased from $40,000 to $41,000; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $62,000 to $63,000.
- 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 is increased from $27,750 to $28,500; the limitation under § 25B(b)(1)(B) is increased from $30,000 to $30,750; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $46,500 to $47,250.
- 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 is increased from $18,500 to $19,000; the limitation under § 25B(b)(1)(B) is increased from $20,000 to $20,500; and the limitation under §§ 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,000 to $31,500.