I should be getting a deduction for the Savers Credit in a ROTH IRA contribution but, Turbo Tax says I don't. Why is this.

Forum|Forum|6 years ago
July 6, 2020
2 replies
9 views

Putting $2000 to get the maximum deduction. My federal Tax liability has stayed the same. And turbo tax says I don't qualify, when I meet all the criteria.

TurboTax Self Employed Online

Best answer by dmertz

The Retirement Savings Contributions Credit is a nonrefundable credit and is not eligible for carryforward. This credit can only be used to reduce income taxes, not self-employment taxes or other taxes, so if your income tax liability is already zero after applying any other income-tax credits that are not eligible for carryforward, there is nothing to which to apply the Retirement Savings Contributions Credit and you don't get the credit.

macuser_22

Alumni - Champ

Did you enter the Roth contribution in the IRA contribution section?

You qualify for the credit if you’re:

18 or older
Not a full-time student
Not claimed as a dependent on someone else’s return

In 2019 your adjusted gross income (AGI) also can’t be more than:

$64,000 if married filing jointly
$48,000 if head of household (with qualifying person)
$32,000 if single, married filing separately, or qualifying widow(er) with dependent child

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**