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What Is IRS Form 8880?
IRS Form 8880 reports contributions made to qualified retirement savings accounts. This form determines whether you qualify for the retirement saver's credit and how much money you can claim. The saver's credit is a tax credit that's available to individuals who make contributions to eligible retirement plans, including:
- Individual retirement accounts (IRAs), both traditional and Roth
- Employer-sponsored plans, such as 401(k)s
- Achieving a Better Life (ABLE) accounts
If you add to any of these accounts, complete Form 8880 and submit it with your Form 1040 when filing your tax return.
Key Takeaways
- IRS Form 8880 calculates how much of a tax credit you may qualify for if you contribute to an eligible retirement savings plan.
- Eligible plans to which you can make contributions and claim the credit include traditional and Roth IRAs and 401(k), 457(b), and 403(b) plans.
- To be eligible for the credit, you must be at least 18 years old, not a student, and not claimed as a dependent on another person's return.
- Calculate your adjusted gross income (AGI) for the year and add your total retirement savings contributions to complete Form 8880.
- Form 8880 can be printed out and filed with a paper return or completed electronically if you plan to file your taxes online.
Who Can File IRS Form 8880?
Anyone who plans to claim the saver's credit on their taxes will complete Form 8880 and file it with their tax return.
To be eligible for the saver's credit, you must:
- Be at least 18 years old
- Not a student
- Not claimed as a dependent on another person's tax return
If you meet those criteria, complete Form 8880 to determine the tax credit you may claim for your retirement plan contributions.
For IRS purposes, you're considered a student if you were enrolled full-time at a school or took a full-time, non-farm training course given by a school or a state, county, or local government agency for any part of five calendar months of the tax year.
How to File IRS Form 8880
You can file Form 8880 by printing out a copy of the form and completing it, then mailing it to the IRS. If you prefer to file your taxes electronically, you can complete Form 8880 online. If you're using online tax filing software, you can follow the prompts to enter the correct information and calculate the credit.
It's helpful to understand how these calculations work, especially if you're completing the form by hand. The one-page form is simple, but it does require that you enter specific information. You must include total contributions to traditional IRA, Roth IRA, and ABLE accounts for the year (not including rollover amounts). You must also include total elective deferrals to a 401(k) or another qualified employer plan
You also need to know your adjusted gross income (AGI), because this determines the percentage of the credit you can claim. The saver's credit is worth 10%, 20%, or 50% of your:
- Traditional or Roth IRA contributions
- Elective salary deferral contributions to a 401(k), 403(b), governmental 457(b), SARSEP, or SIMPLE plan
- Voluntary after-tax employee contributions made to a qualified retirement plan (including the federal Thrift Savings Plan) or 403(b) plan
- 501(c)(18)(D) plan contributions
- ABLE account contributions
$1,000
The maximum credit you may qualify for if you're a single filer. The maximum credit is $2,000 if you're married and file a joint return.
Saver's Credit Amounts (2022 and 2023)
The following table illustrates the saver's credit you may be able to claim for 2022, based on your income.
| 2022 Retirement Saver's Credit Income Thresholds | |||
|---|---|---|---|
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filing Statuses |
| 50% of contributed amount | AGI not more than $41,000 | AGI not more than $30,750 | AGI not more than $20,500 |
| 20% of contributed amount | $41,001–$44,000 | $30,751–$33,000 | $20,501–$22,000 |
| 10% of contributed amount | $44,001–$68,000 | $33,001–$51,000 | $22,001–$34,000 |
| 0% of contributed amount | more than $68,000 | more than $51,000 | more than $34,000 |
In addition, the IRS has revised income thresholds for 2023. The table below reflects the saver's credit for 2023.
| 2023 Retirement Saver's Credit Income Thresholds | |||
|---|---|---|---|
| Credit Rate | Married Filing Jointly | Head of Household | All Other Filers |
| 50% of your contribution | AGI not more than $43,500 | AGI not more than $32,625 | AGI not more than $21,750 |
| 20% of your contribution | $43,501 - $47,500 | $32,626 - $35,625 | $21,751 - $23,750 |
| 10% of your contribution | $47,501 - $73,000 | $35,626 - $54,750 | $23,751 - $36,500 |
| 0% of your contribution | More than $73,000 | More than $54,750 | More than $36,500 |
Download IRS Form 8880 Here
You can download the most current revision of IRS Form 8880 directly from the IRS website. You may only need to download this form if you plan on filing a paper return.
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If you plan to file your return electronically, you can complete Form 8880 online. This may be the simpler option, as your tax filing software program can carry over your adjusted gross income amounts for you to help when calculating the credit.
All you'll need to do is enter the amount you contributed to any eligible retirement plans along with any amounts that were distributed from those accounts prior to the tax filing deadline.
Filing a tax extension gives you extra time to file, but not extra time to pay. If you owe taxes, penalties and interest can accrue as long as your taxes remain unpaid.
Form 8880 is due at the same time as your regular tax return each year. For 2022, the tax filing deadline is April 18, 2023. If you need more time to complete your return, you can request a six-month extension by completing Form 4868.
Who Has to File Form 8880?
Anyone who intends to claim the saver's credit on their taxes will need to file Form 8880; however, not everyone is eligible to receive the saver's credit. That is determined by an individual's income.
Who Is Eligible for the Saver's Credit?
You are eligible for the saver's credit if you are 18 or older, not claimed as a dependent on another person’s return, and not a student. If you meet these criteria, then your eligibility is determined based on your adjusted gross income (AGI).
What Is the Contribution Limit for a 401(k) Plan?
The contribution limit for a 401(k) plan is $20,500 in 2022. If you are aged 50 or older, you can contribute an additional $6,500. These contribution limits are higher in 2023 with individuals allowed to contribute up to $22,500 in addition to a catch-up contribution for those aged 50 or older $7,500.
The Bottom Line
Form 8880 reports your contributions to qualified retirement accounts. It is primarily used to determine whether you qualify for the retirement saver's credit and, if you do, how much money you can claim. Saver's credit applies to individual retirement accounts (IRAs), employer-sponsored plans, such as 401(k)s, and Achieving a Better Life (ABLE) accounts.
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