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New Member
posted Mar 14, 2021 4:14:05 PM

I am having trouble taking advantage of the "Saver's Credit" for contributing to a qualified retirement savings account. Is there a known technical issue related to this?

A competitor's website lets me take advantage of the "Saver's Credit" because I met the requirements.  Are others having this issue?

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3 Replies
Level 15
Mar 14, 2021 6:35:05 PM

Did you also take any money out of a retirement plan?  Your eligible contributions may be reduced by any recent (2018, 2019, 2020, or 2021 prior to 4/15) distributions you received from a retirement plan or IRA, or from an ABLE account.  Furthermore, Rollover contributions do not qualify for the credit.

 

 

New Member
Mar 14, 2021 8:12:54 PM

Hi!

 

No I didn’t take any money out of my plan, and upon double checking the requirements for this credit, I meet all the criteria. It seems as though there’s a technical glitch in the software because it’s not recognizing info that I inputted from my W-2.

Level 15
Mar 14, 2021 8:30:16 PM

It also depends on whether you have any income tax liability for the Savers Credit to reduce.  Do you have any income tax liability?   The Savers Credit is a non-refundable credit, which means once your income tax liability is already reduced to zero, it's not going to provide any additional; i.e., it cannot reduce the amount of your income tax below zero.   Review lines 16-22 of your Federal Form 1040, and Schedules 2 and 3. 

 

To preview your return Form 1040 and Schedules 2-3, here are the steps.

 

  • With your return open, go to the left menu column.
  • Click on TAX TOOLS, then TOOLS.
  • In the Tools window choose "View Tax Summary."
  • At the Tax Summary screen go back to the left menu column and click on "Preview My 1040."
  • You can then view the Form 1040 Worksheet and Schedule 3.