Solved: I should be getting a deduction for the Savers Cre...
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
ryanharris93
New Member

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.

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.
1 Best answer

Accepted Solutions
dmertz
Level 15

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.

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.

View solution in original post

2 Replies
macuser_22
Level 15

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.

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.**
dmertz
Level 15

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.

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.

View solution in original post

Dynamic AdsDynamic Ads
v
Privacy Settings