Most people overlook one of the easiest ways to get free money from the IRS

7 Feb 2026 · 0 min

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In this brief video, Dan Novaes highlights the Saver's Credit, a federal tax credit that many taxpayers miss. He explains that individuals who make modest‑income contributions to retirement accounts such as IRAs or 401(k)s can receive a credit worth up to 50% of their contribution, directly reducing the tax they owe. Unlike a deduction, the credit is "free money" and does not require itemizing. Novaes urges viewers to check for the Saver's Credit when filing their returns and to share the tip with others who could benefit.

Most people miss one of the easiest tax credits, the savers credit. If you contribute to a retirement account like an IRA or a 401k and your income is modest, the IRS gives you a credit of up to 50% of what you contributed. That's literally free money, not a deduction. A credit that directly lowers what you owe most filers never check it. So next time you contribute towards retirement, look for the saver's credit on your return. Send this to a friend who wants to save some money.