Form 8880, Credit for Qualified Retirement Savings Contributions

Form 8880, Credit for Qualified Retirement Savings Contributions, is an IRS tax form used to claim the Retirement Savings Contributions Credit (also known as the Saver’s Credit). Key points include:

1. Designed for low to moderate-income taxpayers

2. Offers a tax credit for contributions to retirement accounts

3. Eligible accounts include:

   – Traditional and Roth IRAs

   – 401(k)s, 403(b)s, and similar workplace plans

4. Credit amount varies based on income and filing status

5. Maximum credit is $1,000 ($2,000 if married filing jointly)

6. Credit is non-refundable, reducing tax owed but not resulting in a refund

This credit encourages retirement savings by providing a tax incentive. The form calculates the credit based on your contributions and adjusted gross income. It’s important to note that income limits apply, and the credit phases out at higher income levels. Filing this form can potentially reduce your tax liability, making it a valuable tool for eligible taxpayers who are actively saving for retirement.