2023 Saver's Credit Income Limit
For 2023, the Saver's Credit Income Limit is $73,000 (Maximum adjusted gross income, married taxpayers filing a joint return), $54,750 (Maximum adjusted gross income, taxpayers filing as head of household) and $36,500 (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 | $73,000 | $54,750 | $36,500 |
Effective 2023-01-01Source: Notice 2022-55 (IRS)Verified 2026-08-29
Compared with 2022
| Item | 2022 | 2023 | Change |
|---|---|---|---|
| Maximum adjusted gross income, married taxpayers filing a joint return | $68,000 | $73,000 | +$5,000 (+7.4%) |
| Maximum adjusted gross income, taxpayers filing as head of household | $51,000 | $54,750 | +$3,750 (+7.4%) |
| Maximum adjusted gross income, all other taxpayers | $34,000 | $36,500 | +$2,500 (+7.4%) |
Who it applies to
Taxpayers who make qualified retirement contributions and wish to claim the Saver's Credit (Retirement Savings Contributions Credit) under section 25B of the Internal Revenue Code for the 2023 tax year.
What changed this year, and why
For 2023, the IRS adjusted the income limits for the Retirement Savings Contributions Credit (Saver's Credit). A taxpayer whose adjusted gross income exceeds the applicable limit cannot claim the credit. For married taxpayers filing a joint return, the maximum adjusted gross income is $73,000. For taxpayers filing as head of household, the maximum adjusted gross income is $54,750. For all other taxpayers, the maximum adjusted gross income is $36,500.
Common questions
- What is the Saver's Credit income limit for married couples filing jointly in 2023?
- The maximum adjusted gross income for married taxpayers filing a joint return is $73,000 for 2023.
- What is the Saver's Credit income limit for head of household filers in 2023?
- The maximum adjusted gross income for taxpayers filing as head of household is $54,750 for 2023.
- What is the Saver's Credit income limit for single filers in 2023?
- The maximum adjusted gross income for all other taxpayers (including single filers) is $36,500 for 2023.
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 three conditions apply to you. First, you were born after January 1, 2006, meaning you are too young to qualify. Second, you are claimed as a dependent on someone else's 2023 tax return, so you are not considered an independent taxpayer for purposes of this credit. Third, you were a student during the tax year, as defined in the instructions. These disqualifications apply to the person who made the qualified contribution or elective deferral. For married couples filing jointly, the credit is computed separately for each spouse, so if one spouse is disqualified, only the other spouse's contributions may count. The rules ensure the credit targets independent, non-student taxpayers who are saving for retirement.
The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2006; (b) is claimed as a dependent on someone else’s 2023 tax return; or (c) was a student (see instructions).
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
The credit rate falls in steps as income rises
The credit rate drops in steps as your adjusted gross income rises, with thresholds that differ by filing status. The form provides a rate table where you look up the bracket containing your income and read off the applicable decimal amount. For single filers, the rate begins at the highest level for income up to $21,750, then steps down to lower rates at $23,750, $32,625, and $35,625, reaching zero at $36,500. For head-of-household filers, the thresholds are higher: $43,500, $47,500, and $54,750. For married couples filing jointly, the brackets extend to $43,500, $47,500, $54,750, and $73,000. Once your income exceeds the top threshold for your filing status - $36,500 for single, $54,750 for head of household, or $73,000 for married filing jointly - the applicable decimal amount is zero and no credit is available. The decimal you find is multiplied by your eligible contributions to produce the preliminary credit amount before the tax-liability cap is applied.
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 surviving spouse --- $21,750 0.5 0.5 0.5 $21,750 $23,750 0.5 0.5 0.2 $23,750 $32,625 0.5 0.5 0.1 $32,625 $35,625 0.5 0.2 0.1 $35,625 $36,500 0.5 0.1 0.1 $36,500 $43,500 0.5 0.1 0.0 $43,500 $47,500 0.2 0.1 0.0 $47,500 $54,750 0.1 0.1 0.0 $54,750 $73,000 0.1 0.0 0.0 $73,000 --- 0.0 0.0 0.0
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
Only the first $2,000 of contributions counts
Even if you made substantial retirement contributions during 2023, only a limited amount counts toward the Saver's Credit. For each person on the return, the form requires you to take the smaller of line 5 or $2,000. Line 5 represents your total qualified contributions minus any recent distributions you received. So even if your contributions total far more than $2,000, only $2,000 of contributions per person can be used to calculate the credit. For married couples filing jointly, each spouse gets their own $2,000 limit in their respective column. This cap means that very large retirement contributions do not increase the credit beyond what the $2,000 per-person limit produces. The applicable credit rate is then applied to this capped amount to determine your final credit. Rollover contributions do not count toward the contribution total on line 1 or line 2, so only new contributions are considered for the credit calculation.
In each column, enter the smaller of line 5 or $2,000 .
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
Recent withdrawals cut the contributions you can count
If you took withdrawals from retirement accounts after 2020 and before the due date of your 2023 tax return, those distributions reduce the contributions you can count toward the credit. The form asks you to report certain distributions received during this period on line 4. These distributions are then subtracted from your total contributions to arrive at the amount on line 5. This adjustment prevents taxpayers from taking money out of retirement accounts while still claiming a credit for new contributions. For married couples filing jointly, both spouses' distribution amounts must be included in the calculation. The rule applies to distributions from IRAs, employer retirement plans, and similar accounts. After making this subtraction, if the result is zero or less, no contributions remain to count toward the credit. The reduced amount is then subject to the per-person cap before the credit rate is applied. This look-back rule discourages using retirement accounts as short-term savings vehicles while still claiming the Saver's Credit on your 2023 return.
Certain distributions received after 2020 and before the due date (including extensions) of your 2023 tax return (see instructions). If married filing jointly, include both spouses’ amounts in both columns. See instructions for an exception . . . 4
Form 8880 (2023), Credit for Qualified Retirement Savings Contributions (IRS)
The credit cannot exceed the tax you owe
The Saver's Credit is nonrefundable, meaning it cannot reduce your tax liability below zero. After calculating the preliminary credit amount by multiplying your eligible contributions by the applicable rate, the form requires you to compare it against your actual tax liability using the Credit Limit Worksheet in the instructions. Line 11 asks you to enter the amount from that worksheet. The final credit on line 12 is the smaller of the calculated credit or the tax limitation amount. This means if your tax liability is less than the credit you would otherwise receive, the credit is reduced to match what you owe. The nonrefundable nature of the credit ensures it provides tax relief rather than creating a refund exceeding taxes paid. Taxpayers with very low tax liability may not benefit fully from the credit even if they meet all other requirements and have substantial retirement contributions. The limitation applies after all other calculations are complete, making it the final step in determining the actual credit amount you can claim.
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions 11
Form 8880 (2023), 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 2022-55 (IRS)
- Maximum adjusted gross income, married taxpayers filing a joint return
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for married taxpayers filing a joint return is increased from $41,000 to $43,500; the limitation under section 25B(b)(1)(B) is increased from $44,000 to $47,500; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $68,000 to $73,000.
- Maximum adjusted gross income, taxpayers filing as head of household
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for taxpayers filing as head of household is increased from $30,750 to $32,625; the limitation under section 25B(b)(1)(B) is increased from $33,000 to $35,625; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $51,000 to $54,750.
- Maximum adjusted gross income, all other taxpayers
The adjusted gross income limitation under section 25B(b)(1)(A) for determining the retirement savings contributions credit for all other taxpayers is increased from $20,500 to $21,750; the limitation under section 25B(b)(1)(B) is increased from $22,000 to $23,750; and the limitation under sections 25B(b)(1)(C) and 25B(b)(1)(D) is increased from $34,000 to $36,500.