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Form 8880

Tax Year 2012

Credit for Qualified Retirement Savings Contribution
This form reports the amount of the taxpayer's and/or spouse's available Retirement Savings Contributions Credit, also known as the Saver's Credit. The taxpayer may be eligible for a credit up to $1000 or $2000 if married filing jointly if the taxpayer made contributions to a qualified retirement plan, deferred compensation plan, or IRA. The amount of credit available will depend on a number of factors including the taxpayer's adjusted gross income, filing status, and the amount of retirement contributions and distributions. This is a nonrefundable credit, and therefore, the taxpayer cannot receive more credit than he or she has in tax liability.  

 

This form will be automatically generated, and the credit will be calculated based on the information entered into different worksheets throughout the return.

 

See 2011 IRS Form 8880 and Directions and IRS Pub. 590, Individual Retirement Arrangements, Chapter 5 - Retirement Savings Contributions Credit for more details and information.

Who Can Take This Credit The taxpayer is eligible for this credit if he or she does not meet any of the disqualifying factors outlined below and made a contribution during the tax year to at least one of the following:
  • Traditional IRA 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 following amounts are not used in calculating the credit:

  • Distributions not taxable as the result of a rollover or a trustee-to-trustee transfer
  • Distributions from the taxpayer's IRA (other than a Roth IRA) rolled over to the taxpayer's Roth IRA
  • Loans from a qualified employer plan treated as a distribution
  • Distributions of excess contributions or deferrals and income allocable to such contributions or deferrals
  • Distributions of contributions made during a tax year and returned with any income allocable to such contributions on or before the due date, including extensions, for that tax year
  • Distributions of dividends paid on stock held by an employee stock ownership plan under section 404(k)
  • Distributions from a military retirement plan
Who Cannot Take This Credit
The credit is not available to the taxpayer if either of the following applies:
  1. The taxpayer's AGI is more than $28,750 if filing single (including married filing separately and qualifying widow or widower), $43,125 if head of household, or $57,500 if married filing jointly, or
  2. The person(s) who made the qualified contribution or elective deferral was one of the following:
    • Born after January 1, 1993,
    • Claimed as a dependent on someone else's tax return for the current tax year, or
    • Was a student, defined as a taxpayer who during any 5 months the tax year was one of the following:
      • Enrolled as a full-time student at a school, or
      • Took a full-time, on-farm training course given by a school or a state, county, or local government agency.

School Defined
This definition includes all postsecondary education and any technical, trade, and mechanical schools. It does not include on-the-job training courses, correspondence schools, or schools offering courses only on the Internet.

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