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Level 2
posted Apr 6, 2023 9:18:34 PM

If W2 lists your 401k & Roth but you are not to list it on the IRA worksheet (line 20), why do I not attain a savings credit though I did save?

Listing it on the worksheet doubles your claimed deductions and Turbotax should apply it from your W2 but in "Review" I do not get the credit though they are Retirement Contributions. Also the Pub 590a for Roth and 401k is confusing.

0 2 337
2 Replies
Level 15
Apr 7, 2023 3:43:21 AM

NEVER enter 401k and ROTH 401k contributions that are entered in box 12 on your W-2, as IRA contributions on the Deductions&Credits page.

 

An IRA is NOT a 401k.....they are even named differently.

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As to why you are not getting the credit?...read the rules, and then see the 2022 table at:

Retirement Savings Contributions Savers Credit | Internal Revenue Service (irs.gov)

Level 15
Apr 7, 2023 5:15:41 AM

There are several reasons you might not qualify for the Retirement Savings Contributions Credit.  If you meet all of the other requirements, it could just be that you have no income-tax liability (Form 1040 line 22) against which to apply the credit.  The credit is a nonrefundable credit, so it can't be used to reduce Other taxes like self-employment tax or the penalty for an early-distribution from a retirement account.