DEFINITION of 'Credit for Qualified Retirement Savings Contribution'

Also known as IRS Form 8880, the Credit for Qualified Retirement Savings Contribution form is a one-page tax form used to calculate the amount of an individual, head of household or married couple's saver's credit. As of 2017, the credit is available to individuals with income up to $31,000, heads of household with with incomes up to $46,500 and married couples filing jointly with incomes up to $62,000.

BREAKING DOWN 'Credit for Qualified Retirement Savings Contribution'

The form asks for information on traditional and Roth IRA contributions for that tax year, elective deferrals to a qualified employer plan and certain retirement distributions received. The saver's credit is one of several tax benefits designed to help low-income filers save for retirement. In addition to meeting low-income requirements, those who want to claim the credit must be at least 18, not a full-time student and cannot be claimed as a dependent on another person's tax return.

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RELATED FAQS
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    The saver's tax credit is a non-refundable tax credit available to eligible taxpayers in the U.S. who make contributions ... Read Answer >>
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    Learn about reducing your income tax burden by contributing to an employer-sponsored retirement plan or IRA, and see what ... Read Answer >>
  3. Will jointly filing taxes have the effect of joining a couple's credit?

    The only thing that "joins" the credit of a married couple is the ownership of joint accounts. In other words, if there is ... Read Answer >>
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    The 2007 and 2008 income limits for Roth IRA contributions are as follows: Situations 2007 2008 Individuals who are married ... Read Answer >>
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