Retirement Savings Contributions Credit, Form 8880

Form 8880 is used to calculate the Retirement Savings Contributions Credit, also known as the saver's credit. This credit, up to $1,000 ($2,000 if married filing jointly), is available to individuals who contribute to retirement savings accounts. It can be claimed in addition to an IRA deduction on Form 1040.

Eligibility Criteria

• Individuals or spouses filing jointly qualify.
• Contributions must be made to various retirement accounts, including IRAs, 401(k)s, 403(b)s, and others.
• Exceptions: High income or if the contributor is born after January 1, 2006, claimed as a dependent, or a student.

Exceptions

• No credit if income exceeds $36,500 (single), $54,750 (head of household), or $73,000 (married filing jointly).
• Ineligible contributors: those born after January 1, 2006, claimed as dependents, or students.

Student Status

• Defined as being enrolled as a full-time student for at least 5 months in 2024.
• Full-time, on-farm training courses qualify.
• Technical, trade, and mechanical schools count as educational institutions.