Updated October 21, 2026. Quick answer: The Credit Limit Worksheet in the Form 8880 instructions caps the saver’s credit at your tax. It takes Form 1040 line 18, subtracts other Schedule 3 credits, and line 3 goes on Form 8880 line 11. If line 3 is zero or less, you can’t take the credit and don’t file the form.
What this worksheet is for
Line 11 of Form 8880 is the tax limit, and its number comes from this worksheet: “Complete this worksheet to figure the amount to enter on line 11.”. The line is covered at Form 8880 lines 6 to 12, the form at Form 8880, and the credit itself at the 2026 saver’s credit.
The worksheet line by line
| Line | What the worksheet says |
|---|---|
| Before you begin | “Before you complete the following worksheet, figure the amount of any credit for the elderly or the disabled you’re claiming on Schedule 3 (Form 1040), line 6d.” |
| Purpose | “Complete this worksheet to figure the amount to enter on line 11.” |
| 1 | “Enter the amount from Form 1040, 1040-SR, or 1040-NR, line 18” |
| 2 | “Enter the total of your credits from Schedule 3, lines 1 through 3, 6d, and 6l” |
| 3 | “Subtract line 2 from line 1. Also enter this amount on Form 8880, line 11.” |
| 3, if zero or less | “But if zero or less, stop; you can’t take the credit” “don’t file this form” |
Who can’t take the credit
The instructions just above the worksheet add two tests: “However, you can’t take the credit if either of the following applies.” The first is “The amount on Form 1040, 1040-SR, or 1040-NR, line 11a, is more than $39,500 ($59,250 if head of household; $79,000 if married filing jointly).” The second is about the person who contributed: “was born after January 1, 2008; (b) is claimed as a dependent on someone else’s 2025 tax return; or (c) was a student.”
A worked example
Illustration, not an IRS example. Every input is invented.
| Item | Illustration |
|---|---|
| Line 1 (suppose Form 1040 line 18 is) | $1,500 |
| Line 2 (suppose Schedule 3 lines 1 through 3, 6d and 6l total) | $300 |
| Line 3, computed: line 1 minus line 2 | $1,200 (computed) |
The $1,200 goes on Form 8880 line 11. The credit on line 12 can be no more than that amount.
Where it goes next
Line 3 is entered “on Form 8880, line 11.” The contributions that earn the credit are on lines 1 to 5, covered at Form 8880 lines 1 to 5, and the credit goes to Schedule 3 line 4, and on Form 1040 it reaches line 20, captioned “Amount from Schedule 3, line 8”.
Edition and line numbers
This page reads the Form 8880 and Instructions (2025), the current file irs.gov served on 2026-10-21 (sha256 in the kit data). The Credit Limit Worksheet in it is for the tax year 2025 return, filed in 2026. Check the tax year printed on the worksheet in your own instructions and use that year’s line numbers, because a different year’s worksheet can number or word its lines differently.
Common mistakes
- Filing Form 8880 after line 3 comes out zero. The worksheet says “don’t file this form”
- Forgetting the elderly or disabled credit on Schedule 3 line 6d, which the instructions ask you to figure first: “figure the amount of any credit for the elderly or the disabled you’re claiming on Schedule 3 (Form 1040), line 6d.”
- Ignoring the income test. The instructions say “However, you can’t take the credit if either of the following applies.”
Related: Form 8880, Form 8880 lines 6 to 12, Form 8880 lines 1 to 5, the 2026 saver’s credit, and Schedule 3 line 4.
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Answer againSources
- Form 8880 and Instructions, Credit for Qualified Retirement Savings Contributions (2025): https://www.irs.gov/pub/irs-pdf/f8880.pdf
- Form 1040 (2025): https://www.irs.gov/pub/irs-pdf/f1040.pdf
Read from the IRS documents linked above on October 21, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.