PriorTax | Credit for Qualified Retirement Savings Contributions - Form 8880

Credit for Qualified Retirement Savings Contributions - Form 8880

Form 8880 allows you to claim the Retirement Savings Contributions Credit, also known as the saver’s credit.

The credit was designed to promote saving for retirement among low and moderate income taxpayers and can amount to 10-50% of the retirement savings contributed over the course of the tax year.

You can take this credit if you or the spouse with whom you are filing jointly made

  • contributions, other than rollover contributions, to a traditional or Roth IRA
  • elective deferrals to a 401(k), 403(b), governmental 457, SEP, or SIMPLE plan
  • voluntary employee contributions to a qualified retirement plan, or
  • contributions to a 501(c)(18)(D) plan

  • You cannot claim the credit for retirement savings contributions if

  • your adjusted gross income is more than $28,250 for single filers, $42,375 for head of household, or $56,500 for married filing jointly, or
  • the person who made the contribution or deferral is under age 18 at the end of the tax year, is claimed as a dependent on someone else’s return, or was a student.

  • Take note that this credit can be claimed in addition to any IRA deduction.