Can I get a tax credit for contributing to my IRA?

Yes – the Saver's Credit rewards lower- and moderate-income savers with a tax credit worth 10%, 20%, or 50% of up to $2,000 contributed ($4,000 if married filing jointly) to an IRA or workplace plan. For 2025, the credit phases out at modified AGI above roughly $39,500 for single filers and $79,000 for married filing jointly, with the largest 50% credit reserved for the lowest incomes. Unlike a deduction, this credit directly reduces your tax bill dollar for dollar, and it stacks on top of any Traditional IRA deduction. You can't claim it if you're a full-time student, under 18, or a dependent. Many eligible people miss it simply because they don't know it exists. If your income qualifies, contributing to an IRA effectively pays you back at tax time – check Form 8880 when you file.