Get Up to $ 2,000 for Contributing to a Roth IRA in 2022 | Personal-finance

If you’re married filing jointly, you’ll get the highest income threshold. Your AGI can be as high as $ 68,000 before you’re kicked out of the Saver’s Credit club. Head of household filers can have an AGI up to $ 51,000. All other filers have to make sure their AGI does not exceed $ 34,000 if they want to take home the Saver’s Credit in 2022.

2022 Saver’s Credit rate and AGI eligibility, by filing status

After you’ve determined your eligibility, it’s time to see what credit amount you qualify for. The IRS grants taxpayers a credit of 50%, 20%, or 10% of their Roth IRA contribution based on their filing status and AGI.

Let’s say you’re a married couple filing jointly and have an AGI of $ 40,000. You and your spouse qualify for the 50% of your contribution credit, up to $ 2,000. If $ 4,000 was contributed to the Roth IRA, your Saver’s Credit would be $ 2,000. Even if you contributed $ 6,000 to your Roth IRA for the year, your 50% credit would be capped at $ 2,000.

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