IRS Form 8880 "Credit for Qualified Retirement Savings Contributions"

What Is Form 8880?

IRS Form 8880, Credit for Qualified Retirement Savings Contributions, is a document issued by the Internal Revenue Service (IRS). Individuals use this application to figure the amount of their retirement savings contributions credit (also known as Saver's Credit).

IRS Form 8880 was last revised in 2020. The document is revised annually because every year the IRS updates income and contribution limits. A fillable Form 8880 is available for download below.

Unlike many other IRS forms, this form does not require a lot of identification information. It is connected with the fact that it is supposed to be attached to IRS Form 1040, IRS Form 1040-SR, or IRS Form 1040-NR, where the identification information is already entered. The application itself is presented on one page and it is accompanied by one page of instructions.

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What Is Form 8880 Used For?

The application helps taxpayers calculate their saver's credit however, not all taxpayers are eligible for the credit. Form 8880 eligibility is a very important factor which is described precisely in the application instructions. An individual cannot take the credit, if:

According to the Form 8880 Instructions, an individual is considered to be a student if during any part of five calendar months in 2019 they were enrolled as a full-time student at a school, or took a full-time training course given by a school or a state, county, or local government agency.

How to Fill Out Form 8880?

Form 8880 Instructions contain requirements for those who can be a claimant to take the credit. For example, if a filer made contributions (other than rollover contributions) to a traditional or Roth IRA, or contributions as a designated beneficiary of an ABLE account, to the ABLE account, they can file Form 8880. A Roth IRA is an Individual Retirement Account that allows you to pay taxes on the money you put into it upfront. Achieving a Better Life Experience (ABLE) account is a saving program for eligible people with disabilities.

In the first part of the document, an applicant is only required to state their name and social security number. After that, an applicant is supposed to fill in the gaps which cover 12 statements. After an applicant enters their contributions they are supposed to follow the formulas presented in the document to complete the rest of it. The 8880 Form also contains a table which applicants should use to find their decimal amount, based on the offered income limits and their filing status. A filer can choose a filing status from:

  • Married and filing jointly;
  • Head of Household;
  • Married and filing separately, single, qualifying widow(er).

The instructions contain a lot of valuable information that will help applicants fill in the gaps. For example, according to the instructions, when a filer is entering the total amount of distributions they received after 2016 and before the due date of their 2020 return (line 4), they must not include:

  • Distributions not taxable as the result of a rollover or a trustee-to-trustee transfer;
  • Distributions of contributions made to an IRA during a tax year and returned (with any income allocable to such contributions) on or before the due date (including extensions) for that tax year;
  • Distributions that are taxable as the result of an in-plan rollover to their designated Roth account;
  • Loans from a qualified employer plan treated as a distribution;
  • Distributions of excess contributions or deferrals (and income allocable to such contributions or deferrals);
  • Distributions from a military retirement plan, other than the federal Thrift Savings Plan;
  • Distributions from an inherited IRA by a non-spousal beneficiary;
  • Distributions from your eligible retirement plan (other than a Roth IRA) rolled over or converted to your Roth IRA.

After the application is completed, a filer must attach it to the income tax return which is applicable to them and submit it.

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Download IRS Form 8880 "Credit for Qualified Retirement Savings Contributions"

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8880
Credit for Qualified Retirement Savings Contributions
OMB No. 1545-0074
2020
Form
Attach to Form 1040, 1040-SR, or 1040-NR.
Department of the Treasury
Attachment
54
Go to www.irs.gov/Form8880 for the latest information.
Internal Revenue Service
Sequence No.
Name(s) shown on return
Your social security number
You cannot take this credit if either of the following applies.
!
• The amount on Form 1040, 1040-SR, or 1040-NR, line 11, is more than $32,500 ($48,750 if head of household; $65,000 if
married filing jointly).
• The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2003; (b) is claimed as a
CAUTION
dependent on someone else’s 2020 tax return; or (c) was a student (see instructions).
(a) You
(b) Your spouse
1
Traditional and Roth IRA contributions, and ABLE account contributions by the
designated beneficiary for 2020. Do not include rollover contributions .
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1
2
Elective deferrals to a 401(k) or other qualified employer plan, voluntary employee
contributions, and 501(c)(18)(D) plan contributions for 2020 (see instructions)
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2
3
Add lines 1 and 2 .
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3
4
Certain distributions received after 2017 and before the due date (including
extensions) of your 2020 tax return (see instructions). If married filing jointly, include
both spouses’ amounts in both columns. See instructions for an exception .
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4
5
Subtract line 4 from line 3. If zero or less, enter -0- .
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5
6
In each column, enter the smaller of line 5 or $2,000
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7
Add the amounts on line 6. If zero, stop; you can’t take this credit .
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7
8
Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 11* .
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8
9
Enter the applicable decimal amount from the table below.
If line 8 is—
And your filing status is—
Married
Head of
Single, Married filing
But not
Over—
filing jointly
household
separately, or
over—
Qualifying widow(er)
Enter on line 9—
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0.5
0.5
0.5
$19,500
$19,500
$21,250
0.5
0.5
0.2
$21,250
$29,250
0.5
0.5
0.1
9
x 0 .
0.5
0.2
0.1
$29,250
$31,875
0.5
0.1
0.1
$31,875
$32,500
$32,500
$39,000
0.5
0.1
0.0
0.2
0.1
0.0
$39,000
$42,500
0.1
0.1
0.0
$42,500
$48,750
$48,750
$65,000
0.1
0.0
0.0
---
0.0
0.0
0.0
$65,000
Note: If line 9 is zero, stop; you can’t take this credit.
10
10
Multiply line 7 by line 9
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11
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions
11
12
Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line 11 here
and on Schedule 3 (Form 1040), line 4
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12
* See Pub. 590-A for the amount to enter if you claim any exclusion or deduction for foreign earned income, foreign housing, or income from
Puerto Rico or for bona fide residents of American Samoa.
8880
For Paperwork Reduction Act Notice, see your tax return instructions.
Form
(2020)
Cat. No. 33394D
8880
Credit for Qualified Retirement Savings Contributions
OMB No. 1545-0074
2020
Form
Attach to Form 1040, 1040-SR, or 1040-NR.
Department of the Treasury
Attachment
54
Go to www.irs.gov/Form8880 for the latest information.
Internal Revenue Service
Sequence No.
Name(s) shown on return
Your social security number
You cannot take this credit if either of the following applies.
!
• The amount on Form 1040, 1040-SR, or 1040-NR, line 11, is more than $32,500 ($48,750 if head of household; $65,000 if
married filing jointly).
• The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 2003; (b) is claimed as a
CAUTION
dependent on someone else’s 2020 tax return; or (c) was a student (see instructions).
(a) You
(b) Your spouse
1
Traditional and Roth IRA contributions, and ABLE account contributions by the
designated beneficiary for 2020. Do not include rollover contributions .
.
.
.
.
1
2
Elective deferrals to a 401(k) or other qualified employer plan, voluntary employee
contributions, and 501(c)(18)(D) plan contributions for 2020 (see instructions)
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2
3
Add lines 1 and 2 .
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3
4
Certain distributions received after 2017 and before the due date (including
extensions) of your 2020 tax return (see instructions). If married filing jointly, include
both spouses’ amounts in both columns. See instructions for an exception .
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4
5
Subtract line 4 from line 3. If zero or less, enter -0- .
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5
6
In each column, enter the smaller of line 5 or $2,000
6
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7
Add the amounts on line 6. If zero, stop; you can’t take this credit .
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7
8
Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 11* .
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8
9
Enter the applicable decimal amount from the table below.
If line 8 is—
And your filing status is—
Married
Head of
Single, Married filing
But not
Over—
filing jointly
household
separately, or
over—
Qualifying widow(er)
Enter on line 9—
---
0.5
0.5
0.5
$19,500
$19,500
$21,250
0.5
0.5
0.2
$21,250
$29,250
0.5
0.5
0.1
9
x 0 .
0.5
0.2
0.1
$29,250
$31,875
0.5
0.1
0.1
$31,875
$32,500
$32,500
$39,000
0.5
0.1
0.0
0.2
0.1
0.0
$39,000
$42,500
0.1
0.1
0.0
$42,500
$48,750
$48,750
$65,000
0.1
0.0
0.0
---
0.0
0.0
0.0
$65,000
Note: If line 9 is zero, stop; you can’t take this credit.
10
10
Multiply line 7 by line 9
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11
Limitation based on tax liability. Enter the amount from the Credit Limit Worksheet in the instructions
11
12
Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line 11 here
and on Schedule 3 (Form 1040), line 4
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* See Pub. 590-A for the amount to enter if you claim any exclusion or deduction for foreign earned income, foreign housing, or income from
Puerto Rico or for bona fide residents of American Samoa.
8880
For Paperwork Reduction Act Notice, see your tax return instructions.
Form
(2020)
Cat. No. 33394D
2
Form 8880 (2020)
Page
General Instructions
Note: Contributions designated under section 414(h)(2) are treated as
employer contributions and, as such, they aren’t voluntary contributions
Section references are to the Internal Revenue Code.
made by the employee. They don’t qualify for the credit and shouldn’t
be included on line 2.
Reminder
Line 4
Contributions by a designated beneficiary to an Achieving a Better
Enter the total amount of distributions you, and your spouse if filing
Life Experience (ABLE) account. A retirement savings contribution
jointly, received after 2017 and before the due date of your 2020 return
credit may be claimed for the amount of contributions you, as the
(including extensions) from any of the following types of plans.
designated beneficiary of an ABLE account, make before January 1,
2026, to the ABLE account. See Pub. 907, Tax Highlights for Persons
• Traditional or Roth IRAs (including myRAs), or ABLE accounts.
With Disabilities, for more information.
• 401(k), 403(b), governmental 457(b), 501(c)(18)(D), SEP, SIMPLE, or to
Future Developments
the federal TSP.
• Qualified retirement plans, as defined in section 4974(c).
For the latest information about developments related to Form 8880 and
its instructions, such as legislation enacted after they were published,
Don’t include any of the following.
go to www.irs.gov/Form8880.
• Distributions not taxable as the result of a rollover or a trustee-to-
Purpose of Form
trustee transfer.
• Distributions that are taxable as the result of an in-plan rollover to your
Use Form 8880 to figure the amount, if any, of your retirement savings
designated Roth account.
contributions credit (also known as the saver’s credit).
• Distributions from your eligible retirement plan (other than a Roth IRA)
rolled over or converted to your Roth IRA.
This credit can be claimed in addition to any IRA deduction
TIP
claimed on Schedule 1 (Form 1040), line 19.
• Loans from a qualified employer plan treated as a distribution.
• Distributions of excess contributions or deferrals (and income
Who Can Take This Credit
allocable to such contributions or deferrals).
• Distributions of contributions made to an IRA during a tax year and
You may be able to take this credit if you, or your spouse if filing jointly,
returned (with any income allocable to such contributions) on or before
made (a) contributions (other than rollover contributions) to a traditional
the due date (including extensions) for that tax year.
or Roth IRA; (b) elective deferrals to a 401(k), 403(b), governmental
457(b), SEP, SIMPLE, or to the federal Thrift Savings Plan (TSP); (c)
• Distributions of dividends paid on stock held by an employee stock
voluntary employee contributions to a qualified retirement plan, as
ownership plan under section 404(k).
defined in section 4974(c) (including the federal TSP); (d) contributions
• Distributions from a military retirement plan (other than the federal
to a 501(c)(18)(D) plan; or (e) contributions, as a designated beneficiary
TSP).
of an ABLE account, to the ABLE account, as defined in section 529A.
• Distributions from an inherited IRA by a nonspousal beneficiary.
However, you can’t take the credit if either of the following applies.
If you’re filing a joint return, include both spouses’ amounts in both
• The amount on Form 1040, 1040-SR, or 1040-NR, line 11, is more
columns.
than $32,500 ($48,750 if head of household; $65,000 if married filing
jointly).
Exception. Don’t include your spouse’s distributions with yours when
entering an amount on line 4 if you and your spouse didn’t file a joint
• The person(s) who made the qualified contribution or elective deferral
return for the year the distribution was received.
(a) was born after January 1, 2003; (b) is claimed as a dependent on
someone else’s 2020 tax return; or (c) was a student.
Example. You received a distribution of $5,000 from a qualified
retirement plan in 2020. Your spouse received a distribution of $2,000
You’ll need to refigure the amount on Form 1040 or
!
from a Roth IRA in 2018. You and your spouse file a joint return in 2020,
1040-SR, line 11, if you’re filing Form 2555 or Form 4563 or
but didn’t file a joint return in 2018. You would include $5,000 in column
you’re excluding income from Puerto Rico. See Pub. 590-A
(a) and $7,000 in column (b).
at www.irs.gov/Pub590A for details.
CAUTION
Line 7
You were a student if during any part of 5 calendar months of 2020
you:
Add the amounts from line 6, columns (a) and (b), and enter the total.
• Were enrolled as a full-time student at a school; or
Line 11
• Took a full-time, on-farm training course given by a school or a state,
Before you complete the following worksheet, figure the amount of any
county, or local government agency.
credit for the elderly or the disabled you’re claiming on Schedule 3
A school includes technical, trade, and mechanical schools. It
(Form 1040), line 6. See Schedule R (Form 1040) to figure the credit.
doesn’t include on-the-job training courses, correspondence schools, or
Credit Limit Worksheet
schools offering courses only through the Internet.
Complete this worksheet to figure the amount to enter on line 11.
Specific Instructions
1. Enter the amount from Form 1040, 1040-SR, or
Column (b)
1.
1040-NR, line 18
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Complete column (b) only if you’re filing a joint return.
2. Form 1040 or 1040-SR filers: Enter the total of
Line 2
your credits from Schedule 3, lines 1 through 3,
Include on line 2 any of the following amounts.
and Schedule R, line 22.
• Elective deferrals (including designated Roth contributions under
Form 1040-NR filers: Enter the total of your
section 402A, if applicable) to a 401(k), 403(b), governmental 457(b),
2.
credits from Schedule 3, lines 1 through 3 .
.
SEP, SIMPLE, or to the federal TSP.
3. Subtract line 2 from line 1. Also enter this amount
• Voluntary employee contributions to a qualified retirement plan, as
on Form 8880, line 11. But if zero or less, stop;
defined in section 4974(c) (including the federal TSP).
3.
you can’t take the credit—don’t file this form .
• Contributions to a 501(c)(18)(D) plan.
These amounts may be shown in box 12 of your Form(s) W-2 for
2020.
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