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.