At AFSOHA Multiservices, we believe in rewarding smart financial decisions. If you contributed to a retirement account this year, you may qualify for a valuable tax credit. The Saver’s Credit, claimed using IRS Form 8880, helps low- and moderate-income taxpayers reduce their tax bill simply by saving for the future.
Here’s what you need to know to take advantage of it in 2025.
What Is Form 8880?
Form 8880 is used to calculate and claim the Credit for Qualified Retirement Savings Contributions—commonly known as the Saver’s Credit. This credit gives you a break on your federal taxes when you contribute to retirement accounts like:
- Traditional or Roth IRA
- 401(k), 403(b), 457(b), or similar employer retirement plan
- SIMPLE IRA or SEP IRA
- ABLE accounts (for eligible individuals with disabilities)
At AFSOHA Multiservices, we make sure every eligible client benefits from this often-overlooked credit.
Do You Qualify for the Saver’s Credit in 2025?
You may qualify for this credit if:
✅ You are 18 or older
✅ You are not a full-time student
✅ No one claims you as a dependent
✅ You contributed to a qualified retirement account
✅ Your income falls within the limits below
2025 Saver’s Credit Income Limits:
| Filing Status | AGI Must Be Below |
|---|---|
| Married Filing Jointly | $76,500 |
| Head of Household | $57,375 |
| Single or Married Filing Separately | $38,250 |
These limits are based on your Adjusted Gross Income (AGI) for 2025. If your income is below the threshold for your filing status, and you meet the other requirements, you may be eligible.
How Much Can You Get?
The Saver’s Credit is worth 10%, 20%, or 50% of your retirement contributions, depending on your income. The maximum contribution amount the IRS considers for the credit is:
- $2,000 for individuals
- $4,000 for married couples filing jointly
That means you could receive a credit of up to:
- $1,000 for individuals
- $2,000 for couples filing jointly
Example:
If you file as single, earn $20,000, and contribute $1,000 to a Roth IRA, you may qualify for a 50% credit. That gives you a $500 reduction on your tax bill.
Important Note!
This is a nonrefundable credit, which means it can lower the taxes you owe to zero, but it will not result in a refund beyond what you’ve already paid.
How to Claim the Credit?
When you file your taxes with AFSOHA Multiservices, we will:
- Confirm your retirement contributions
- Complete Form 8880 accurately
- Include the credit on your federal return (Form 1040 or 1040-SR)
- Help you maximize all other credits and deductions
If you make IRA contributions for 2025, you have until April 15, 2026, to count them toward this credit.
Why You Should Not Miss This Opportunity?
Many eligible taxpayers miss out on the Saver’s Credit simply because they do not know it exists. If you’re saving for retirement, even with modest income, this credit can reduce your tax bill and give you more financial flexibility.
At AFSOHA Multiservices, we look at your complete financial picture to make sure you get every dollar you are entitled to.
We’re Here to Help!
Saving for retirement is one of the smartest things you can do. Getting a tax credit for it is even better. Let AFSOHA Multiservices help you claim the Saver’s Credit and make the most of your retirement planning.
Contact us today to schedule your tax consultation or ask questions about Form 8880 and how it applies to your situation. We’re here to help you reduce your taxes while building a stronger future.