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Bug? Retirement Savings Contribution Credit not working
When I click Update on this button (the current value is $0) it just keeps me/returns me to the Deductions and Credits summary page. Based on the criteria, this return should be eligible for the credit. FWIW, I exited this section to correct something else then tried to come back. @TurboTaxSusan
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Deductions & credits
The Retirement Savings Contributions Credit (“Saver’s credit”) is very limited and is for low income people. See the table on Form 8880: https://www.irs.gov/pub/irs-pdf/f8880.pdf
You, or your spouse, must not have taken money out of a retirement account (including drawing a pension) in the last three years. See line 2 on form 8880.
It is not a refundable credit. You must have a tax liability to take the credit against.
TurboTax (TT) will check this automatically when it sees you made a qualified contribution. If you want to verify that happened; enter in TT at:
Federal Taxes Tab
Deductions & Credits
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-Retirement and Investment
- Retirement Savings Contribution Credit
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Deductions & credits
Thanks. We may or may not be eligible for the credit (and because of the way the numbers work, the value would be tiny) but TT isn't opening the dialogue or providing any message that we're not eligible. There's definitely a bug in the desktop software.
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Deductions & credits
Same issue! And I'm not able to update line D on Form 8880 either. I do qualify for the credit, and the Deductions & Income section isn't showing that I do.
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Deductions & credits
"Deductions & Income section" - I am not familiar with this section. Did you mean "Deductions & Credits"?
"line D on Form 8880"- there is no line D on the 8880. What are you referring to?
Are you filing MFJ? Are you (or your spouse if MFJ) a student? What is your AGI?
As Hal_Al noted above, it's actually difficult to qualify for the credit, because most people with so little income are either students or don't have the spare dollars to contribute to retirement.
There are a couple of other reasons why you might fail to qualify: "(a) was born after January 1, 2004; (b) is claimed as a dependent on someone else’s 2021 tax return;"
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