Credit for Qualified Retirement Savings Contributions, Form 8880, 2023

Form 8880 is used to determine the retirement savings contributions credit, also known as the saver's credit. This credit, with a maximum of $1,000 (or $2,000 for married filing jointly), can be claimed in addition to any IRA deduction.

Who Can Take This Credit?

• Eligible Contributors:

  • Traditional or Roth IRA contributors.
  • Elective deferrals to 401(k), 403(b), 457(b), SEP, SIMPLE, or TSP.
  • Voluntary employee contributions to qualified retirement plans.
  • Contributions to a 501(c)(18)(D) plan.
  • Contributions as a designated beneficiary of an ABLE account (section 529A).

• Ineligibility:

  • Adjusted Gross Income (AGI) exceeding $36,500 ($54,750 for head of household; $73,000 for married filing jointly).
  • Contributors born after January 1, 2006, claimed as dependents, or students.

• Special Consideration:

  • Recalculate Form 1040 or 1040-SR, line 11, for certain circumstances (e.g., filing Form 2555, Form 4563, or excluding income from Puerto Rico).

Determining Student Status

• Definition: A student during any part of 5 calendar months in 2023 if:

  • Enrolled as a full-time student.
  • Undertook a full-time, on-farm training course from a qualified institution.

• Excluded from Student Definition:

  • On-the-job training, correspondence, or internet-only courses.

For the current year's Form 8880, click here.