IRS retirement tax credit — How eligible savers can reduce their federal tax bill by up to 50 percent under 2025 income rules

Millions of taxpayers qualify for an IRS retirement tax credit yet never claim it. The Saver’s Credit can reduce federal taxes by up to 50 percent. Income limits expand in 2025. Eligible workers include modest earners saving through IRAs or employer plans. A single form determines eligibility. Awareness remains the biggest barrier.