There are several types of retirement accounts that could get you a tax deduction for your contributions, such as traditional IRAs and 401(k)s. While this is certainly a nice benefit, there's another tax benefit for retirement savings that many people aren't aware of -- the Retirement Savings Contributions Credit, or "Saver's Credit." The Saver's Credit is designed to give low- to moderate-income taxpayers an incentive to save for retirement, and it could be worth up to $1,000 per year if you qualify. Image Source: Getty Images. The Saver's Credit The Retirement Savings Contributions Credit is available to taxpayers 18 years old or older, who are not full-time students and cannot be claimed as a dependent on anyone else's tax return. For those who qualify based on their income, the credit is worth a certain percentage of eligible retirement contributions, up to $2,000 per person, per year. Married couples are eligible to take the credit for both spouses, assuming that both have qualifying contributions into eligible retirement accounts. The credit can be taken for contributions to most tax-advantaged retirement accounts, such as employer-sponsored retirement plans like 401(k)s, 403(b)s, 457 plans, as well as traditional and Roth IRAs, SIMPLE IRAs, and SEP-IRAs, just to name the most popular account types. 2018 Saver's Credit income limits Who qualifies for the credit? Basically, individuals or married couples whose adjusted gross income, or AGI, is under certain thresholds can claim 50%, 20%, or 10% of qualifying contributions. Here are the IRS Saver's Credit AGI limits for 2018. Credit -- Percentage of contribution Married Filing Jointly Head of Household All Other Filers 50% of contribution Up to $38,000 Up to $28,500 Up to $19,000 20% of contribution $38,001-$41,000 $28,501-$30,750 $19,001-$20,500 10% of contribution $41,001-$63,000 $30,751-$47,250 $20,501-$31,500 No credit AGI over $63,000 AGI over $47,250 AGI over $31,500 Source: IRS. Because the maximum credit percentage is 50%, the credit can be worth as much as $1,000 per person. Those in the 20% and 10% income ranges can claim a credit of up to $400 and $200, respectively. An example of how this works Let's say that you file your taxes as head of household and your AGI for 2018 is $35,000. Over the course of the year, you contribute $2,500 to your employer's 401(k) plan. Since your AGI puts you in the 10% credit bracket, and you've contributed more than the $2,000 maximum that can be considered for the credit, you are entitled to a $200 Saver's Credit on your 2018 tax return. It's also worth mentioning that the Saver's Credit is in addition to any other tax benefits you get for your retirement contributions. In the previous example, not only would this taxpayer be entitled to a $200 credit, but he or she would also be able to exclude their $2,500 in 401(k) contributions from their taxable income. If they were in the 15% tax bracket, this translates to an additional $375 in savings, for a total of $575. Take advantage if you qualify If you're eligible for it, the Saver's Credit is literally free money that the government is willing to give you in exchange for putting money away for retirement. Or put another way, the Saver's Credit allows you to make an investment in your future that will produce an instant 10%, 20%, or even 50% return. The $16,122 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.The Motley Fool has a disclosure policy.