Form 8880, Credit for Qualified Retirement Savings Contributions
- Used to figure the amount of allowable retirement savings contributions credit (saver's credit).
- Form 8880 automatically populates for eligible taxpayers, who have retirement entries on their W-2 form in box 12. There are a few questions that must be answered to complete Form 8880.
Follow the instructions below to correctly complete the Form 8880:
1. Navigate to Form 8880 using the Attached Forms Tree.
2. Indicate whether the taxpayer/spouse was a full time student for at least 5 months, by checking the appropriate box.
3. Complete the Validation Check by entering Y or N.
- Enter Y, if the taxpayer/spouse withdrew from retirement in the 3 years prior to the current tax year (this is not asking about the current year).
- Enter N, if the taxpayer/spouse did not withdrawal from retirement in the 3 years prior to the current tax year (this is not asking about the current year).
4. If you answered Y in the Validation Check, you will need to enter the total of all retirement distributions in Line 4b for the taxpayer or spouse.
If this box is populating and the taxpayer/spouse did not withdrawal from retirement in the three prior years, go back to step 3 and change the Y to an N.