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New Member
posted Mar 9, 2024 3:31:17 AM

Can anyone help with the Retirement Savers Credit. Nowhere does it ask what we contributed. We meet all the qualifications.

All its asks for is distributions back to 2020. We had distributions in 2023 but it doesn’t ask anywhere what his contributions anywhere. And then says we don’t qualify. He contributes every payday.

0 3 590
3 Replies
Level 15
Mar 9, 2024 4:00:56 AM

Contributions were entered already somewhere in the interview (W-2 and/or IRA section) so all the program needs for the 8880 form is any distributions taken in the last 3 tax years.  When you are done with all the input you can review the return including the 8880 form.

 

If you review the 8880 you will see that distributions negates the contributions for the credit ... congress wrote this rule on purpose to keep taxpayers from making a contribution to get the credit then taking an immediate distribution which was not the intent of the credit. 

New Member
Mar 9, 2024 4:34:27 AM

Even with the distributions on 8880 and contributions from the W-2 input, it says we don’t qualify because there were no contributions. 

Level 15
Mar 9, 2024 5:16:06 AM

If the distributions made by you our your spouse in 2023 and not rolled over or converted to Roth are more than the amount of retirement contributions, you have no net retirement contributions on which to calculate the credit.