Credit For Qualified Retirement Savings Contribution

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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  3. What are the best ways to pay less income tax?

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    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 >>
  5. What are the income limits for Roth IRA contributions?

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