Retirement Savings Credit – Form 8880

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 $1000 ($2000 for MFJ). This is a nonrefundable credit, meaning it reduces your 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. The 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 on MFJ returns also for the spouse, 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.

These amounts may be shown in Box 12 of Form(s) W-2.

Instructions for entering Form 8880 in the tax program

From the Main Menu of the Tax Return (Form 1040) select:

• Credits Menu
• Retirement Savings Credit (8880)

NOTE: This is a guide to entering Form 8880 into the Keystone Tax Solutions Pro program. This is not intended as tax advice. For additional information refer to the Additional Information below.

Additional Information:

Instructions for Form 8880, Credit for Qualified Retirement Savings Contributions

Publication 590, Individual Retirement Arrangements (IRAs)