Go from Losing $180 to Gaining $270 by Canceling Just One Subscription

Streaming, storage, fitness, dating apps, even the heated seats in some cars — nearly everything has a subscription cost now. 

A worthy goal may be to cancel just one subscription this month. Better yet, redirecting that subscription money into a retirement account (like an IRA) is a small way to get more out of your money rather than putting it back into your checking account. For tax year 2026, that simple move may qualify you for the Saver’s Credit on your tax return.

What subscriptions actually cost

According to one survey by C+R Research, consumers spend about $219 a month on subscriptions. Many subscriptions go unused and unnoticed. Those same respondents initially estimated that their costs were $86 a month (that’s 2.5 times less than what they actually spend). 

Certainly, putting money back in your pocket by canceling a subscription you won’t miss is a win. But just canceling that $15 per month may not be the end goal, because at best the money just sits in your checking account. Or it becomes “found money” and you spend it on something you weren’t planning to buy; it just vanishes.

Take it one more step

Cancel the $15 subscription you rarely use (or forgot you had) and open an IRA. You can do it online or from your phone in about ten minutes, through your bank or preferred brokerage. Then, schedule an auto-deposit on the day your old subscription used to charge you, and watch your money make money. 

It’s the same habit, same amount, same day of the month. The only thing that changes is who the money belongs to (you).

Nobody can revoke an IRA, delete it, or paywall a feature you already paid for. It just sits there, quietly compounding. Your money earns returns, and those returns earn returns, for as long as you leave it alone. 

The credit that pays you back for saving, while it still exists

The Saver’s Credit (officially called the Retirement Savings Contributions Credit) is a tax credit, worth 50%, 20%, or 10% of up to $2,000 you contribute to a retirement account, depending on your income and filing status.

But it’s only available through 2026. It’s transitioning to the new federal Saver’s Match, which will be a direct government deposit to your retirement account. (More on that in the next section.)

Redirect what one subscription costs you in a year, and depending on your bracket, part of it may come back at tax time. Just keep in mind it’s a nonrefundable credit, so it can only reduce what you owe down to $0.

To be eligible, the IRS requires that you:

• Are 18 or older
• Aren’t claimed as a dependent on someone else’s return
• Aren’t a full-time student for any part of five or more months of the year

Income limits apply, too, and adjust each year.

How the rules change after 2026

Tax year 2026 is the last year the Saver’s Credit exists in its current form. 

Starting in tax year 2027, the Saver’s Credit is being replaced by the Saver’s Match. Instead of a credit that reduces what you owe in taxes, you get a deposit straight into your retirement account — 50% of what you contribute, up to $2,000. The money just has to go into a pre-tax retirement account, like a 401(k) or Traditional IRA. It can’t go into a Roth IRA.

For many people, Saver’s Match may be more valuable, since it’s a direct deposit rather than a credit that can be reduced by other parts of a return. But it’s a different mechanism with its own rules starting in 2027.

If you’re planning ahead to 2027, a Traditional IRA covers both. It still qualifies for today’s Saver’s Credit, and it’s the account type the Saver’s Match can be deposited into. A Roth IRA gets you the credit, but you’d need a second pre-tax account for the match. (Explore the differences between a Traditional and Roth IRA.)

The math, without the hype

At $15 a month, that’s $180 a year in savings plus roughly $90 back at tax time if you qualify for the top 50% Saver’s Credit rate. 

More importantly, you’re swapping an automated recurring expense for an automated investment into your own future. 

A 24-year-old who starts with $180 a year and keeps going has a very different retirement account at 65 than one who waits until “there’s more room in the budget.” 

Start saving a little now. It compounds over time. One subscription is a great place to start. 

Next up: Setting up automated contributions can take the stress off of your savings goals.