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 2022. 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.
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.
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:
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 2022 return (line 4), they must not include:
After the application is completed, a filer must attach it to the income tax return which is applicable to them and submit it.