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tcbushman
Level 1

Do I qualify for the Savers Credit? Classes ended in April, finals on May 2nd, and graduation May 7. If I don't count May, I was only a full-time student for 4 months

Do I qualify for the Savers Credit (roth IRA)? I was a student for the spring semester. Classes ended in April, there were some finals on May 2nd, and graduation the first weekend of May. If I don't count May, then I was only a full-time student for 4 months and could claim the Savers credit for contributing to my roth IRA. If May counts then that would be 5 months and I'm no longer eligible. I am not eligible for any of the education credits which is why I would like the savers credit if possible. Thanks!

3 Replies
CalCountry
Level 6

Do I qualify for the Savers Credit? Classes ended in April, finals on May 2nd, and graduation May 7. If I don't count May, I was only a full-time student for 4 months

The Savers Credit is based on eligible contributions you make to retirement accounts, including both Traditional and Roth IRA accounts.

It is likely that your educational institution will determine your full-time status if classes have ended yet final testing has not yet concluded.  Presumably you remain an "enrolled" full-time student until the academic period concludes.

The disqualification for a student who was full time during any part of five months has been in place for several years.

See the citation below from the IRS website at:
   https://www.irs.gov/uac/newsroom/plan-now-to-get-full-benefit-of-saver-s-credit-tax-credit-helps-low...

•A student cannot take the credit. A person enrolled as a full-time student during any part of 5 calendar months during the year is considered a student.

tcbushman
Level 1

Do I qualify for the Savers Credit? Classes ended in April, finals on May 2nd, and graduation May 7. If I don't count May, I was only a full-time student for 4 months

Yeah, I figured it would be a long shot, but still kind of a grey area. Best to error on side of caution I suppose.
tcbushman
Level 1

Do I qualify for the Savers Credit? Classes ended in April, finals on May 2nd, and graduation May 7. If I don't count May, I was only a full-time student for 4 months

Thanks!
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