8880 Credit for Qualified Retirement Savings Contributions

2007 Form 8880, Credit for Qualified Retirement Savings Contributions
Purpose: This is the first circulated draft of the 2007 Form 8880, Credit for
Qualified Retirement Savings Contributions, for your review and comments. The
major changes are listed below.
TPCC Meeting: None, but one may be arranged if requested.
Prior Version: The 2006 Form 8880 is available at:
http://www.irs.gov/pub/irs-pdf/f8880.pdf
Other Products: Circulations of draft tax forms, instructions, notices, and
publications are posted at:
http://taxforms.web.irs.gov/draft_products.html
Comments: Please email, fax, call, or mail any comments by May 22, 2007.
Gregg M. Lynam
Tax Forms and Publications
SE:W:CAR:MP:T:I:S

Email: [email protected]
Phone: 202- 622- 4056
Fax: 202- 622- 5022

Changes to the 2007 Form 8880
•

In the Caution section, the dollar amounts were revised to reflect inflation
adjustments. (Rev. Proc. 2006-53, section 3.06)

•

On line 9, we revised the table in accordance with P.L. 109-280, sec.
833a, to reflect the inflation adjustments made to the adjusted gross
income limits used in figuring the applicable percentage under IRC 25B.
(Rev. Proc. 2006-53, section 3.06)

•

On line 12, we revised the credit line references to reflect the application
of the tax liability limit under IRC 25B. IRC 26(a)(2) no longer applies.

•

On line 12 and line 14, we revised the line references to conform to the
2007 Form 1040, Form 1040A, and Form 1040NR.

•

Year references were updated throughout.

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I.R.S. SPECIFICATIONS

TO BE REMOVED BEFORE PRINTING

INSTRUCTIONS TO PRINTERS
FORM 2441, PAGE 1 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PAPER: WHITE WRITING, SUB. 20
FLAT SIZE: 203 mm (8") 3 279 mm (11")
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8880

Form

Action

Date

Signature

O.K. to print
Revised proofs
requested

OMB No. 1545-0074

Credit for Qualified Retirement Savings Contributions
©

Department of the Treasury
Internal Revenue Service

2007

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Attach to Form 1040, Form 1040A, or Form 1040NR.
© See instructions on back.

Name(s) shown on return

Attachment
Sequence No.

129

Your social security number

You cannot take this credit if either of the following applies.
CAUTION

● The amount on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 36 is more than $26,000 ($39,000
if head of household; $52,000 if married filing jointly).
● The person(s) who made the qualified contribution or elective deferral (a) was born after January 1, 1990, (b) is
claimed as a dependent on someone else’s 2007 tax return, or (c) was a student (see instructions).
(a) You

1
2

3
4

5
6
7
8
9

Traditional and Roth IRA contributions for 2007. Do not include rollover
contributions

1

Elective deferrals to a 401(k) or other qualified employer plan, voluntary
employee contributions, and 501(c)(18)(D) plan contributions for 2007
(see instructions)
Add lines 1 and 2

2
3

Certain distributions received after 2004 and before the due date
(including extensions) of your 2007 tax return (see instructions). If
married filing jointly, include both spouses’ amounts in both columns.
See instructions for an exception
Subtract line 4 from line 3. If zero or less, enter -0In each column, enter the smaller of line 5 or $2,000
Add the amounts on line 6. If zero, stop; you cannot take this credit
Enter the amount from Form 1040, line 38*; Form 1040A, line 22; or
Form 1040NR, line 36
Enter the applicable decimal amount shown below:
If line 8 is—
Over—

--$15,500
$17,000
$23,250
$25,500
$26,000
$31,000
$34,000
$39,000
$52,000

10
11
12

$15,500
$17,000
$23,250
$25,500
$26,000
$31,000
$34,000
$39,000
$52,000
---

4
5
6

7
8

And your filing status is—
Married
filing jointly

Head of
household

Single, Married filing
separately, or
Qualifying widow(er)

Enter on line 9—

.5
.5
.5
.5
.5
.5
.2
.1
.1
.0

.5
.5
.5
.2
.1
.1
.1
.1
.0
.0

.5
.2
.1
.1
.1
.0
.0
.0
.0
.0

Note: If line 9 is zero, stop; you cannot take this credit.
Multiply line 7 by line 9
Enter the amount from Form 1040, line 46; Form 1040A, line 28; or
Form 1040NR, line 43
1040 filers:

1040A filers:

13
14

But not
over—

(b) Your spouse

Enter the total of your credits from lines 47
through 52 plus the amounts, if any, from line 13
of Form 8396 and line 13 of Form 8859
Enter the total of your credits from lines 29 through 32.

%

X.

9

10

11

12

1040NR filers: Enter the total of your credits from lines 44
through 47 plus the amounts, if any, line 13 of
Form 8396 and line 13 of Form 8859.
Subtract line 12 from line 11. If zero, stop; you cannot take this credit
Credit for qualified retirement savings contributions. Enter the smaller of line 10 or line
13 here and on Form 1040, line 53; Form 1040A, line 33; or Form 1040NR, line 48

13
14

*See Pub. 590 for the amount to enter if you are filing Form 2555, 2555-EZ, or 4563 or you are excluding income from Puerto Rico.

For Paperwork Reduction Act Notice, see back of form.

Cat. No. 33394D

Form

8880

(2007)

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I.R.S. SPECIFICATIONS
TO BE REMOVED BEFORE PRINTING
INSTRUCTIONS TO PRINTERS
FORM 8880, PAGE 2 of 2
MARGINS: TOP 13 mm (1⁄ 2 "), CENTER SIDES.
PRINTS: HEAD TO HEAD
PAPER: WHITE WRITING, SUB. 20.
INK: BLACK
1
FLAT SIZE: 216 mm (8 ⁄ 2 ") x 279 mm (11")
PERFORATE: (NONE)
DO NOT PRINT — DO NOT PRINT — DO NOT PRINT — DO NOT PRINT

Form 8880 (2007)

General Instructions

Page

● Traditional or Roth IRAs.

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● 401(k), 403(b), governmental 457, 501(c)(18)(D), SEP, or
SIMPLE plans.

Section references are to the Internal Revenue Code.

Purpose of Form

● Qualified retirement plans as defined in section 4974(c)
(including the federal Thrift Savings Plan).

Use Form 8880 to figure the amount, if any, of your
retirement savings contributions credit.

TIP

Do not include any:

This credit can be claimed in addition to any IRA
deduction claimed on Form 1040, line 32; Form
1040A, line 17; or Form 1040NR, line 31.

Who Can Take This Credit

2

You may be able to take this credit if you, or your spouse if
filing jointly, made (a) contributions (other than rollover
contributions) to a traditional or Roth IRA, (b) elective
deferrals to a 401(k), 403(b), governmental 457, SEP, or
SIMPLE plan, (c) voluntary employee contributions to a
qualified retirement plan as defined in section 4974(c)
(including the federal Thrift Savings Plan), or (d) contributions
to a 501(c)(18)(D) plan.
However, you cannot take the credit if either of the
following applies:

● The amount on Form 1040, line 38; Form 1040A, line 22;
or Form 1040NR, line 36, is more than $26,000 ($39,000 if
head of household; $52,000 if married filing jointly).

● Distributions not taxable as the result of a rollover or a
trustee-to-trustee transfer.
● Distributions from your IRA (other than a Roth IRA) rolled
over to your 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.

If you are filing a joint return, include both spouses’
amounts in both columns.

● The person(s) who made the qualified contribution or
elective deferral (a) was born after January 1, 1990, (b) is
claimed as a dependent on someone else’s 2007 tax return,
or (c) was a student.

Exception. Do not include your spouse’s distributions with
yours when entering an amount on line 4 if you and your
spouse did not file a joint return for the year the distribution
was received.

You were a student if during any part of 5 calendar months
of 2007 you:

Example. You received a distribution of $5,000 from a
qualified retirement plan in 2007. Your spouse received a
distribution of $2,000 from a Roth IRA in 2005. You and your
spouse file a joint return in 2007, but did not file a joint return
in 2005. You would include $5,000 in column (a) and $7,000
in column (b).

● Were 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.

Line 7

A school includes technical, trade, and mechanical
schools. It does not include on-the-job training courses,
correspondence schools, or schools offering courses only
through the Internet.

Add the amounts from line 6 columns (a) and (b), and enter
the total.
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the right
amount of tax.

Specific Instructions
Column (b)
Complete column (b) only if you are filing a joint return.

Line 2
Include on line 2 any of the following amounts.
● 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 your Form(s) W-2
for 2007.

Line 4
Enter the total amount of distributions you, and your spouse
if filing jointly, received after 2004 and before the due date of
your 2007 return (including extensions) from any of the
following types of plans.

You are not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number. Books
or records relating to a form or its instructions must be
retained as long as their contents may become material in
the administration of any Internal Revenue law. Generally, tax
returns and return information are confidential, as required by
section 6103.
The average time and expenses required to complete and
file this form will vary depending on individual circumstances.
For the estimated averages, see the instructions for your
income tax return.
If you have suggestions for making this form simpler, we
would be happy to hear from you. See the instructions for
your income tax return.

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