Did you know that the IRS wants to reward you for contributing to your retirement? If you’re saving for retirement on a tight budget, the IRS actually gives you a little extra help. The Saver’s Credit is a special tax break for low- and moderate-income taxpayers who contribute to an IRA or an employer-sponsored retirement plan. It’s on top of the usual tax benefits—and if you qualify, it can reduce or even wipe out what you owe in taxes.

A big reason people miss out? Most don’t know it exists. In fact, only 12% of workers earning under $51,000 are aware of it. The Saver’s Credit is a dollar-for-dollar reduction of your tax bill (not a refund—this is a non-refundable credit), meaning it can bring your tax bill down to zero, but not beyond that.

You may qualify if you’re 18 or older, not claimed as a dependent, and not a student. Even small retirement contributions count, so starting small truly matters. The credit can give you 10-50% of your contributions back depending on income. To claim it, you’ll use Form 8880 when filing your tax return.

For more information, read this article on irs.gov.