Confused about Form 8880 Savers Credit - is it worth the extra filing cost?

I'm scrambling to finish my taxes before the deadline and hit a strange roadblock. Every tax software I try (TurboTax, H&R Block, and TaxSlayer) is forcing me to include Form 8880 for the Savers Credit. Here's the problem - adding this form changes my filing from free to costing around $135, but it doesn't increase my refund amount at all! I'm really frustrated because it feels like I'm being forced to pay extra filing fees for absolutely no benefit. What exactly does Form 8880 do for me? If it's not actually increasing my refund, is there any way to remove it from my filing? I've tried everything I can think of - looking for options to remove forms, starting over completely, but nothing works. All three tax programs seem determined to include this form and charge me for it. Any suggestions on how to deal with this or should I just bite the bullet and pay the extra filing cost for no apparent benefit?

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20 comments

Mei Chen

•8M

The Form 8880 is for the Retirement Savings Contributions Credit (Saver's Credit), which gives a tax credit to low and moderate-income taxpayers who contribute to retirement accounts like 401(k)s or IRAs. The reason it's showing up is because you likely indicated you made contributions to a retirement account. The software is required to check if you qualify for this credit based on your inputs. If your refund amount isn't changing, it probably means your income is above the threshold to qualify for the credit (for 2024 filing season, that's generally $36,500 for single filers, $73,000 for married filing jointly). Unfortunately, most free versions of tax software don't include "advanced" forms like 8880, which is why they're trying to upsell you. You have a few options: 1) Check if you qualify for IRS Free File based on your income, 2) Try using the free filing software from Cash App Taxes or FreeTaxUSA which include more forms in their free version, or 3) Use the IRS Free Fillable Forms if you're comfortable doing the calculations yourself.

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Mei Chen

•8M

Removing the retirement contribution information isn't a good idea. If you contributed to a traditional IRA and took a deduction, not reporting it would mean losing that deduction. If you contributed to a Roth IRA, you still need to report it for the IRS's records, even though it doesn't affect your taxes directly. Not reporting retirement contributions accurately could potentially trigger issues if you're audited. The IRS receives Form 5498 from your plan administrator showing your contributions, so they would know if you didn't report it. Better to explore the free filing options I mentioned instead of omitting information.

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Amara Okonkwo

•8M

After spending hours battling with this same issue last year, I finally found a solution with taxr.ai (https://taxr.ai). They have a document review feature that helped me understand exactly why Form 8880 was being included and gave me step-by-step instructions to correctly handle it without paying those ridiculous upgrade fees. What I discovered was that some tax software programs automatically include Form 8880 when they detect retirement contributions, even if you don't qualify for the credit. The taxr.ai system analyzed my inputs and showed me exactly where to adjust my filing to avoid the unnecessary form while still accurately reporting my retirement contributions.

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Amara Okonkwo

•8M

Taxr.ai doesn't file your taxes for you - it's more like having a tax expert look over your documents and explain what's happening in plain English. It helped me understand exactly why Form 8880 was showing up and what I could do about it, then I applied that knowledge in my regular tax software. As for accuracy concerns, I was skeptical too at first. What convinced me was that they explain the actual tax rules and show you the relevant IRS publications. They're not telling you to do anything sketchy - just helping you understand what forms you actually need based on your situation. I found their explanations much clearer than what I got from TurboTax's help section.

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Fatima Al-Sayed

•8M

Just wanted to update - I decided to try taxr.ai after seeing comments here and it literally saved me $129 on my filing fees! They explained that Form 8880 was being unnecessarily triggered by how I entered my retirement savings. The service showed me that while I did make retirement contributions, my AGI was over the limit for the Saver's Credit, making Form 8880 completely pointless for my situation. They gave me specific steps to work around this in H&R Block by adjusting how I entered my retirement information while still keeping everything 100% accurate. Honestly shocked that the tax prep companies don't explain this better. They're clearly hoping people just pay the upgrade fee without questioning it. Will definitely be using this service for next year's taxes too!

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Dylan Hughes

•8M

If you're still struggling with getting answers from the tax software companies, I'd recommend trying Claimyr (https://claimyr.com). I was in the same boat last year trying to figure out form issues and couldn't get through to the IRS for clarification. Claimyr got me connected to an actual IRS agent in about 20 minutes instead of waiting on hold for hours. The agent explained exactly why Form 8880 was appearing and confirmed I didn't need to pay extra for it since I didn't qualify for the credit anyway. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. It was surprisingly easy and saved me from paying unnecessary fees.

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Dylan Hughes

•8M

They use a system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent is actually on the line. It saves you from having to listen to that terrible hold music for hours. The IRS agents are definitely the official source for tax filing questions, regardless of how you reach them. While they occasionally give incorrect information (like any human), I found that having specific questions about Form 8880 resulted in clear answers. The key is asking precise questions like "Does my AGI of $X qualify me for the Saver's Credit?" rather than general ones. You're still talking to the same IRS agents whether you wait on hold yourself or use a service to handle that part.

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Sofia Rodriguez

•8M

Alright I need to eat my words. After posting my skeptical comment, I decided to try Claimyr since I was getting nowhere with H&R Block's customer service. Got connected to an IRS agent in about 15 minutes who confirmed I don't need to pay for the premium version just because Form 8880 shows up. The agent explained that while the software includes the form automatically based on my retirement contributions, I can still file without it since my income exceeds the Saver's Credit limits. They recommended using Cash App Taxes (formerly Credit Karma Tax) which includes Form 8880 in their free version if I need the form, or FreeTaxUSA which charges much less for premium forms. Saved me from paying an unnecessary $89 upgrade fee. Sometimes being proven wrong is actually pretty great for your wallet!

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Dmitry Ivanov

•8M

The interface is definitely user-friendly though not quite as polished as TurboTax. It walks you through everything step by step with clear explanations. Unfortunately, direct import from TurboTax isn't available, but you can manually enter the information from last year's return. It takes a little extra time the first year, but once you're in their system, future years are much easier. I found the trade-off worth it since I've saved hundreds in filing fees over the past few years. They include nearly all forms in their free federal filing, so you don't get hit with surprise upgrade charges halfway through.

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Giovanni Mancini

•5M

Actually, Miguel is incorrect about Form 8880 being required for all retirement contributions. You only need to file Form 8880 if you're actually claiming the Saver's Credit. If your income is above the eligibility thresholds, you don't need this form at all. The real issue is that tax software companies use this as a revenue opportunity. They detect retirement contributions and automatically assume you might qualify for the credit, then charge you for the "premium" version to include the form. But if you know you don't qualify based on your income, you can often work around this by being more specific about how you enter your retirement information. For 2024 taxes, the income limits are $36,500 for single filers and $73,000 for married filing jointly. If you're above these amounts, you can safely skip Form 8880 entirely. The key is finding tax software that doesn't automatically force it or knowing how to navigate around the upsell tactics.

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