The Saver's Tax Credit is available to UT System employees who:
- Make Tax-deferred contributions to an employer-sponsored retirement plan;
- Are 18 years or older;
- Are not full-time students;*
- Are not claimed as a dependant on another person's tax return; and
- Meet the income limits described below.
*See the instructions for Form 8880, Credit for Qualified Retirement Savings Contributions, for the applicable definition of a full-time student.
The amount of the credit is 50%, 20%, or 10% of your retirement plan contributions up to $2,000 ($4,000 if married filing jointly). The maximum credit $1,000 ($2,000 if married filing jointly). Use the chart below to calculate your credit.
Example: Jill, who works at a retail store, is married and earned $41,000 in 2021. Jill’s spouse was unemployed in 2021 and didn’t have any earnings. Jill contributed $2,000 to her UTSaver TSA for 2022. After deducting her TSA contribution, the adjusted gross income shown on her joint return is $39,000. Jill may claim a 50% credit of $1,000 for her $2,000 TSA contribution on her 2022 tax return.
Income Limits for Saver's Tax Credit Eligibility
2023 SAVERS CREDIT | |||
Adjusted Gross Income (AGI) Range by Filing Status | |||
Credit Percentage | Married, Filing a Joint Return |
Head of Household | All Other Filers |
50% of your contribution | $43,500 or less | $32,625 or less | $21,750 or less |
20% of your contribution | $43,501 to $47,500 | $32,626 to $35,625 | $21,751 to $23,750 |
10% of your contribution | $47,501 to $73,000 | $35,626 to $54,750 | $23,751 to $36,500 |
0% of your contribution | more than $73,000 | more than $54,750 | more than $36,750 |
2022 SAVERS CREDIT | |||
Adjusted Gross Income (AGI) Range by Filing Status | |||
Credit Percentage | Married, Filing a Joint Return |
Head of Household | All Other Filers |
50% of your contribution | $40,000 or less | $30,750 or less | $20,500 or less |
20% of your contribution | $41,001 to $44,000 | $30,751 to $33,000 | $20,501 to $22,000 |
10% of your contribution | $44,001 to $68,000 | $33,001 to $51,000 | $22,001 to $34,000 |
0% of your contribution | more than $68,000 | more than $51,000 | more than $34,000 |