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Desktop: Form 8880 - Retirement Savings Credit

Form 8880 is used to figure the amount, if any, of your retirement savings contributions credit that can be claimed in the current year. Taxpayers may be eligible for the credit if they made

  • contributions (other than rollover contributions) to a traditional or Roth IRA,
  • elective deferrals to a 401(k), 403(b), governmental 457, SEP, or SIMPLE plan,
  • voluntary employee contributions to a qualified retirement plan as defined in section 4974(c) (including the federal Thrift Savings Plan), or
  • contributions to a 501(c)(18)(D) plan.

The maximum credit is $1,000 ($2,000 for MFJ). This is a nonrefundable credit, so it reduces the tax liability but will not be refunded if the tax liability is already at zero. A taxpayer cannot claim the retirement savings credit if either of the following applies:

  1. Their adjusted gross income is more than
    • $30,000 if filing Single or MFS
    • $45,000 if filing Head of Household
    • $60,000 if filing MFJ
  2. The person(s) who made the qualified contribution or elective deferral
    • was born after January 1, 1997, or
    • is claimed as a dependent on someone else’s current year tax return, or
    • was a student.

For the taxpayer (and spouse on MFJ return) you will enter the following amounts on the form:

  • Traditional IRA contributions for this year.
  • Roth IRA contributions for this year.
  • Elective deferrals to a 401(k) or 403(b) plan (including designated Roth contributions under section 402A), or to a governmental 457, SEP, or SIMPLE plan.
  • Voluntary employee contributions to a qualified retirement plan as defined in section 4974(c) (including the federal Thrift Savings Plan).
  • Contributions to a 501(c)(18)(D) plan.

Note: These amounts may be shown in Box 12 of Form(s) W-2 with code D, and if this is present in the W-2 Form 8880 will be automatically produced and cannot be deleted.

Instructions for entering Form 8880 in TaxSlayer Pro:

From the Main Menu of the tax return (Form 1040) select:

  • Credits
  • Retirement Savings Credit (8880)

Note: This is a guide to entering Form 8880 into the TaxSlayer Pro program. This is not intended as tax advice.

Additional Information:

Instructions for Form 8880, Credit for Qualified Retirement Savings Contributions

Publication 590, Individual Retirement Arrangements (IRAs)