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, 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.