2019 Saver's Credit Income Limit
For 2019, the Saver's Credit Income Limit figures are $38,500 (Maximum AGI for the 50% credit rate, married taxpayers filing a joint return), $41,500 (Maximum AGI for the 20% credit rate, married taxpayers filing a joint return), $64,000 (Maximum AGI for the 10% credit rate, married taxpayers filing a joint return) and 10 more figures below.
| Item | Married taxpayers filing a joint return | Taxpayers filing as head of household | All other taxpayers |
|---|---|---|---|
| Maximum AGI for the 50% credit rate | $38,500 | $28,875 | $19,250 |
| Maximum AGI for the 20% credit rate | $41,500 | $31,125 | $20,750 |
| Maximum AGI for the 10% credit rate | $64,000 | $48,000 | $32,000 |
Effective 2019-01-01Source: IR-2018-211 (IRS)Verified 2026-09-03
Highest-tier applicable percentage, Middle-tier applicable percentage, Lowest non-zero-tier applicable percentageSource: United States Code (2019 edition), Title 26 Section 25B (Office of the Law Revision Counsel)Verified 2026-09-03
Maximum eligible contribution per personSource: Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)Verified 2026-09-03
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Maximum AGI for the 50% credit rate, married taxpayers filing a joint return | $38,000 | $38,500 | +$500 (+1.3%) |
| Maximum AGI for the 20% credit rate, married taxpayers filing a joint return | $41,000 | $41,500 | +$500 (+1.2%) |
| Maximum AGI for the 10% credit rate, married taxpayers filing a joint return | $63,000 | $64,000 | +$1,000 (+1.6%) |
| Maximum AGI for the 50% credit rate, taxpayers filing as head of household | $28,500 | $28,875 | +$375 (+1.3%) |
| Maximum AGI for the 20% credit rate, taxpayers filing as head of household | $30,750 | $31,125 | +$375 (+1.2%) |
| Maximum AGI for the 10% credit rate, taxpayers filing as head of household | $47,250 | $48,000 | +$750 (+1.6%) |
| Maximum AGI for the 50% credit rate, all other taxpayers | $19,000 | $19,250 | +$250 (+1.3%) |
| Maximum AGI for the 20% credit rate, all other taxpayers | $20,500 | $20,750 | +$250 (+1.2%) |
| Maximum AGI for the 10% credit rate, all other taxpayers | $31,500 | $32,000 | +$500 (+1.6%) |
| Highest-tier applicable percentage | 50% | 50% | +0% (+0.0%) |
| Middle-tier applicable percentage | 20% | 20% | +0% (+0.0%) |
| Lowest non-zero-tier applicable percentage | 10% | 10% | +0% (+0.0%) |
| Maximum eligible contribution per person | $2,000 | $2,000 | +$0 (+0.0%) |
Maximum AGI for the 50% credit rate
Maximum AGI for the 20% credit rate
Maximum AGI for the 10% credit rate
$19,250$64,000
One dot per column of the table, on a scale running from the smallest of these amounts to the largest. The scale is logarithmic, so that the amounts crowded at the low end stay far enough apart to read. The table states which dot is which.
Who it applies to
Taxpayers who contribute to retirement plans and want to claim the Saver's Credit
What changed this year, and why
For 2019, the IRS increased the maximum adjusted gross income limits for claiming the Retirement Savings Contributions Credit (Saver's Credit). Married taxpayers filing jointly can now have income up to $64,000 (up from $63,000 in 2018), taxpayers filing as head of household can have income up to $48,000 (up from $47,250 in 2018), and all other taxpayers can have income up to $32,000 (up from $31,500 in 2018).
Common questions
- How does the Saver's Credit work with these income limits?
- The Saver's Credit is calculated as a percentage of your retirement contributions, but your income must fall below the IRS limits: $64,000 for married filing jointly, $48,000 for head of household, or $32,000 for all other taxpayers in 2019.
Every amount on this page is a published figure rather than yours. The Saver's Credit calculator for a joint return takes the number you enter and works it out against them, showing which published figure it used.
Three things that disqualify you even under the income limit
Three conditions can disqualify you from claiming the Saver's Credit even if your income falls within the allowed limits. First, the person who made the qualified contribution or elective deferral must not have been born after January 1, 2002, meaning you must be at least 18 years old by the end of 2019. Second, you cannot be claimed as a dependent on someone else's 2019 tax return. Third, you cannot have been a student during the tax year. A student is defined as someone who was enrolled as a full-time student at a school or took a full-time, on-farm training course given by a school or government agency for part of five calendar months of 2019. If any of these three conditions apply to you, you are ineligible for the credit regardless of whether your adjusted gross income is below the maximum threshold of $32,000 for single filers, $48,000 for head of household, or $64,000 for married couples filing jointly.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2002; (b) is claimed as a dependent on someone else’s 2019 tax return; or (c) was a student.
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
The credit rate falls in steps as income rises
The Saver's Credit rate is not fixed but depends on your adjusted gross income and filing status. The form instructs you to enter the applicable decimal amount from a table based on your income level. The credit rate starts at 0.5 for the lowest income brackets and gradually decreases as income rises. For married couples filing jointly in 2019, a rate of 0.5 applies to income up to $38,500, while the rate drops to 0.2 for income between $38,500 and $41,500, then to 0.1 for income between $41,500 and $64,000. Once income exceeds $64,000, the rate becomes 0.0 and no credit is available. Similar tiered structures apply to head of household filers and single filers, with different income thresholds. For example, head of household filers receive the highest rate of 0.5 on income up to $28,875, while single filers get 0.5 only on income up to $19,250. If your income falls in a bracket where the rate is 0.0, you cannot claim the credit at all, even if you otherwise qualify.
9 Enter the applicable decimal amount from the table 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) --- $19,250 0.5 0.5 0.5 $19,250 $20,750 0.5 0.5 0.2 $20,750 $28,875 0.5 0.5 0.1 $28,875 $31,125 0.5 0.2 0.1 $31,125 $32,000 0.5 0.1 0.1 $32,000 $38,500 0.5 0.1 0.0 $38,500 $41,500 0.2 0.1 0.0 $41,500 $48,000 0.1 0.1 0.0 $48,000 $64,000 0.1 0.0 0.0 $64,000 --- 0.0 0.0 0.0
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
For the 2019 Saver's Credit, only the first $2,000 of your retirement savings contributions can count toward the credit. Line 6 of Form 8880 requires each taxpayer to enter the smaller of line 5 or $2,000 in their column. Line 5 is the total of your IRA contributions and elective deferrals to employer plans, minus any recent distributions reported on line 4. If your eligible contributions are less than $2,000, you use the actual amount; if they equal or exceed $2,000, the contribution base is capped at $2,000. On a joint return, each spouse can count up to $2,000 of their own contributions. The applicable credit rate is then multiplied by this capped amount. Even if you contributed far more than $2,000 to your retirement accounts in 2019, the credit is calculated only on up to $2,000 per person.
6 In each column, enter the smaller of line 5 or $2,000 . . . . . . . . . . 6
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
Recent withdrawals from retirement accounts reduce the contributions you can count for the Saver's Credit. Line 4 requires you to report certain distributions received after 2016 and before the due date (including extensions) of your 2019 tax return. This includes distributions from traditional or Roth IRAs, employer retirement plans such as those defined in the Internal Revenue Code, and other qualified retirement plans. The amount you report on line 4 is then subtracted from your total contributions on line 5. If your recent distributions equal or exceed your contributions, line 5 becomes zero and you cannot claim the credit. For married couples filing jointly, both spouses' distributions must be included. However, certain distributions are excluded, such as rollovers, trustee-to-trustee transfers, loans treated as distributions, and distributions of excess contributions. This rule prevents taxpayers from making contributions just to claim the credit while simultaneously withdrawing retirement funds.
4 Certain distributions received after 2016 and before the due date (including extensions) of your 2019 tax return
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit cannot exceed the amount of tax you owe. Line 11 of Form 8880 requires you to enter the amount from the Credit Limit Worksheet in the instructions. This worksheet calculates your maximum credit based on your actual tax liability. Line 12 then instructs you to enter the smaller of line 10 (your calculated credit based on contributions and income rate) or line 11 (your tax liability limit). If your calculated credit exceeds your federal income tax liability, your credit is limited to the amount of tax you owe. The Saver's Credit is nonrefundable, meaning it can reduce your tax to zero but cannot create a refund. Any credit amount that exceeds your tax liability is lost. This limitation ensures that the credit only benefits taxpayers who have a federal income tax obligation.
11 Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
Being a student for even part of five months can disqualify you
For the 2019 Saver's Credit, you are disqualified if you were a student during any part of 5 calendar months of 2019. Being a student means you were either enrolled as a full-time student at a school or took a full-time, on-farm training course given by a school or a state, county, or local government agency. The definition of a school includes technical, trade, and mechanical schools, but it does not include on-the-job training courses, correspondence schools, or schools offering courses only through the Internet. Even if you were only a student for part of a single day within those 5 months, you fail this test and cannot claim the credit for 2019. This student disqualification applies regardless of your income level, so even if your adjusted gross income is below the applicable limit, being a student for 5 calendar months bars you from the credit entirely.
You were a student if during any part of 5 calendar months of 2019 you: • Were enrolled as a full-time student at a school; or • Took a full-time, on-farm training course given by a school or a state, county, or local government agency. A school includes technical, trade, and mechanical schools. It doesn’t include on-the-job training courses, correspondence schools, or schools offering courses only through the Internet.
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
The form used, and where the credit lands on your return
To claim the Saver's Credit, you must file Form 8880 (Credit for Qualified Retirement Savings Contributions) with your federal income tax return. The form attaches to Form 1040, 1040-SR, or 1040-NR. Once you complete Form 8880 and calculate your credit amount, that credit flows through to Schedule 3 (Form 1040 or 1040-SR), line 4, or Form 1040-NR, line 48. Schedule 3 is where various nonrefundable credits are reported before being transferred to the main tax return. This means the Saver's Credit reduces the tax you owe, but only to the extent of your tax liability after other credits have been applied. The Credit Limit Worksheet in the Form 8880 instructions determines the maximum credit you can claim based on your tax situation.
12 Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line 11 here and on Schedule 3 (Form 1040 or 1040-SR), line 4; or Form 1040-NR, line 48 . . . . . . . . 12
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
This credit stacks on top of the separate IRA deduction
The Saver's Credit works alongside other tax benefits rather than replacing them. Specifically, the credit can be claimed in addition to any IRA deduction you claim on your return. This means if you contribute to a traditional IRA and qualify for an above-the-line deduction for that contribution, you can also claim the retirement savings contributions credit on top of that deduction. The two benefits address different aspects of your tax situation: the IRA deduction reduces your adjusted gross income, while the Saver's Credit directly reduces your tax liability dollar for dollar (subject to the credit rate based on your income). For 2019, the maximum adjusted gross income to qualify for the Saver's Credit is $64,000 for married taxpayers filing jointly, $48,000 for head of household filers, and $32,000 for all other taxpayers. Both the IRA deduction and the Saver's Credit can apply to the same contribution, making retirement savings even more tax-advantaged.
This credit can be claimed in addition to any IRA deduction claimed on Schedule 1 (Form 1040 or 1040-SR), line 19; or Form 1040-NR, line 32.
Form 8880 (2019), 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.
IR-2018-211 (IRS)
- Maximum AGI for the 50% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $38,000 to $38,500; the limitation under Section 25B(b)(1)(B) is increased from $41,000 to $41,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $63,000 to $64,000.
- Maximum AGI for the 20% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $38,000 to $38,500; the limitation under Section 25B(b)(1)(B) is increased from $41,000 to $41,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $63,000 to $64,000.
- Maximum AGI for the 10% credit rate, married taxpayers filing a joint return
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the retirement savings contribution credit for married taxpayers filing a joint return is increased from $38,000 to $38,500; the limitation under Section 25B(b)(1)(B) is increased from $41,000 to $41,500; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $63,000 to $64,000.
- Maximum AGI for the 50% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for taxpayers filing as head of household is increased from $28,500 to $28,875; the limitation under Section 25B(b)(1)(B) is increased from $30,750 to $31,125; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $47,250 to $48,000.
- Maximum AGI for the 20% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for taxpayers filing as head of household is increased from $28,500 to $28,875; the limitation under Section 25B(b)(1)(B) is increased from $30,750 to $31,125; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $47,250 to $48,000.
- Maximum AGI for the 10% credit rate, taxpayers filing as head of household
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for taxpayers filing as head of household is increased from $28,500 to $28,875; the limitation under Section 25B(b)(1)(B) is increased from $30,750 to $31,125; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $47,250 to $48,000.
- Maximum AGI for the 50% credit rate, all other taxpayers
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for all other taxpayers is increased from $19,000 to $19,250; the limitation under Section 25B(b)(1)(B) is increased from $20,500 to $20,750; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,500 to $32,000.
- Maximum AGI for the 20% credit rate, all other taxpayers
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for all other taxpayers is increased from $19,000 to $19,250; the limitation under Section 25B(b)(1)(B) is increased from $20,500 to $20,750; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,500 to $32,000.
- Maximum AGI for the 10% credit rate, all other taxpayers
The adjusted gross income limitation under Section 25B(b)(1)(A) for determining the Retirement Savings Contribution Credit for all other taxpayers is increased from $19,000 to $19,250; the limitation under Section 25B(b)(1)(B) is increased from $20,500 to $20,750; and the limitation under Sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $31,500 to $32,000.
United States Code (2019 edition), Title 26 Section 25B (Office of the Law Revision Counsel)
- Highest-tier applicable percentage
if the adjusted gross income of the tax- payer is not over $30,000, 50 percent,
- Middle-tier applicable percentage
if the adjusted gross income of the tax- payer is over $30,000 but not over $32,500, 20 percent,
- Lowest non-zero-tier applicable percentage
if the adjusted gross income of the tax- payer is over $32,500 but not over $50,000, 10 percent,
Form 8880 (2019), Credit for Qualified Retirement Savings Contributions (IRS)
- Maximum eligible contribution per person
In each column, enter the smaller of line 5 or $2,000