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Use Form 8880 to figure the amount, if any, of your retirement savings contributions credit (also known as the saver’s credit). The maximum amount of the credit is $1,000 ($2,000 if married filing jointly).
Information about Form 8880, Credit for Qualified Retirement Savings Contributions, including recent updates, related forms and instructions on how to file. Form 8880 is used by individuals to figure the amount, if any, of their retirement savings contributions credit.
IRS Form 8880 reports contributions made to qualified retirement savings accounts. This form determines whether you qualify for the retirement saver's credit and how much money you can claim.
Form 8880, Credit for Qualified Retirement Savings Contributions PDF. Page Last Reviewed or Updated: 20-Aug-2024. The Saver's Credit is a tax credit for eligible contributions to your IRA, employer-sponsored retirement plan or Achieving a Better Life Experience (ABLE) account.
if the contribution qualifies, from the drop down menu in Box 14 of Form W-2, select Retirement (Not in Box 12) Carry to Form 8880. If these are treated as employer contributions they aren’t eligible for the credit. See Instructions for Form W-2.
To claim the credit, you must complete IRS form 8880 and include it with your tax return. Two key pieces of information you need before preparing Form 8880 is the AGI you calculate on your income tax return and documentation that reports your total retirement account contributions for the year.
Form 8880 is used to compute the credit for qualified retirement savings contributions, also known as the "Saver's Credit." This credit is designed to incentivize low- and moderate-income taxpayers to save for retirement, and disabled persons to build savings with ABLE accounts.
Taxpayers use IRS Form 8880 for the Qualified Retirement Savings Contribution Credit. As of 2023, the credit is available to single taxpayers with a maximum income of $36,500, increasing to...
Based on Form 8880, the credit percentage is 50%, 20%, or 10% of the eligible contributions, depending on your adjusted gross income. For the 50% rate: Married Filing Jointly - AGI not more than $39,500. Head of Household - AGI not more than $29,625.
You can then calculate and claim the amount of the Saver's Credit you are eligible for by completing Form 8880, "Credit for Qualified Retirement Savings Contributions," when you file your tax return. If you're not sure whether you qualify or how to complete this form, check with a tax professional.