Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Miscellaneous Credits

Retirement Savings Contributions Credit

Determining the Amount of the Credit

Calculate the retirement savings contributions credit on Form 8880, Credit for Qualified Retirement Savings Contributions, and report the amount in Form 1040, Tax and Credits section.

The credit can be as low as 10% or as high as 50% of a maximum annual contribution of $2,000 per person depending on filing status and AGI.

Review the notes in Volunteer Resource Guide Nonrefundable Credits tab, Form 8880.

Tax software hint.

If the taxpayer meets the age and income requirements and a contribution was indicated on Form W-2 or IRA worksheet, Form 8880 will appear in the forms tree, highlighted in red. You will need to address a few fields before the return is complete. Go to the Volunteer Resource Guide, Nonrefundable Credits tab, Retirement Savings Contributions Credit, for software entries.

Form 8880, $0 for Traditional and Roth IRAs, $1,500 for elective deferrals to a qualified plan, and $1,500 for the total.
Form 8880

Form 8880