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 or married couple's saver's credit. As of 2009, the credit is available to individuals with income up to $26,500, heads of household with with incomes up to $39,750 and married couples filing jointly with incomes up to $53,000.

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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    Calculate your potential tax savings when you contribute to a Roth IRA. Tax credits are available to individuals who meet ... Read Answer >>
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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 >>
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