Save time with our cheat sheets, fact sheets, checklists & books!

March 6, 2009

Form 8880 (IRS Form)



IRS Form 8880 is used to figure out the amount of Saver’s Credit for which an individual is eligible, and includes a built in formula that helps the taxpayer determine the amount.
The Saver’s Credit can be claimed in addition to deduction received for traditional IRA contribution.
Referring Cite
Additional Helpful Information
Employers are encouraged to tell their employees about the credit. Employers can inform employees in any way they choose, including use of the notice set out below.
Notice to Employees Regarding Saver’s Credit:
This notice explains how you may be able to pay less tax by contributing to [insert name of employer’s plan] (the “Plan”) or to an individual retirement arrangement (“IRA”).
Beginning in 2002, if you make contributions to the Plan or to an IRA, you may be eligible for a tax credit, called the “saver’s credit.” This credit could reduce the federal income tax you pay dollar for- dollar. The amount of the credit you can get is based on the contributions you make and your credit rate. The credit rate can be as low as 10% or as high as 50%, depending on your adjusted gross income — the lower your income, the higher the credit rate. The credit rate also depends on your filing status. See the tables at the end of this notice to determine your credit rate.
The maximum contribution taken into account for the credit for an individual is $2,000. If you are married filing jointly, the maximum contribution taken into account for the credit is $2,000 each for you and your spouse.
The credit is available to you if you:
  • are 18 or older,
  • are not a full-time student,
  • are not claimed as a dependent on someone else’s return, and
  • have adjusted gross income (shown on your tax return for the year of the credit) that does not exceed:

Keep Learning

Qualified Charitable Distribution (QCD)

Definition A distribution that is excludable from the distributee’s income, as a result of meeting the following requirements: It is made after the distributee reaches

Saver’s Credit

Definition Also known as the Saver’s Tax Credit: Nonrefundable tax credit available to eligible individuals who make contributions to their retirement account. The saver’s credit

Catch-up Contribution

Definition An additional contribution that can be made to a retirement plan by a participant who is at least age-50 by the end of the

Be among the first to know when

IRA Rules