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kendiwilley
New Member

Why with AIG of 12200 will it not give retirement savings credit for $2000 to myRA entered as Roth IRA( not with employer)??

Son had 3800 in personal income and 8400 in business income - had taxes due of 349$. But with $2000 to myRA account kept calculating 0 for savings credit??

What is the problem??

He took no distributions, is not a student, and is not a dependent on anyone elses return, and is 40 years old.

1 Best answer

Accepted Solutions
AndreaG
New Member

Why with AIG of 12200 will it not give retirement savings credit for $2000 to myRA entered as Roth IRA( not with employer)??

It depends on the exact circumstances. If he took distributions from retirement plans after 2013 and before the due date of the 2016 tax return, this can reduce or eliminate the contributions that are eligible for the credit. 

There are additional requirements concerning your age, AGI, status as a student, and whether you are a dependent taxpayer. See page 47-48 of Pub 590A under the heading, "Retirement Savings Contributions Credit"  and "can you claim the credit" to review the requirements. https://www.irs.gov/pub/irs-pdf/p590a.pdf

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1 Reply
AndreaG
New Member

Why with AIG of 12200 will it not give retirement savings credit for $2000 to myRA entered as Roth IRA( not with employer)??

It depends on the exact circumstances. If he took distributions from retirement plans after 2013 and before the due date of the 2016 tax return, this can reduce or eliminate the contributions that are eligible for the credit. 

There are additional requirements concerning your age, AGI, status as a student, and whether you are a dependent taxpayer. See page 47-48 of Pub 590A under the heading, "Retirement Savings Contributions Credit"  and "can you claim the credit" to review the requirements. https://www.irs.gov/pub/irs-pdf/p590a.pdf

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