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New Member
posted Jul 6, 2020 7:59:31 AM

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.

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1 Best answer
Level 15
Jul 6, 2020 8:38:45 AM

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.

2 Replies
Level 15
Jul 6, 2020 8:09:09 AM

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

Level 15
Jul 6, 2020 8:38:45 AM

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.