You may be able to take a tax credit for making eligible contributions to your IRA or employer-sponsored retirement plan. This tax credit is called Retirement Savings Contributions Credit (Saver’s Credit). What form is TurboTax asking for?
Here is more information on the Saver's credit:
What is the 2019 Saver's Credit?
The Retirement Savings Contributions Credit (Saver’s Credit) helps low and middle-income taxpayers save for retirement. Sometimes this is called the Credit for Qualified Retirement Savings Contribution or Retirement Credit. It’s a non-refundable tax credit which means it can’t reduce the amount of tax owed to less than zero.
The Saver’s Credit can be taken for your contributions to an ABLE (Achieving a Better Life Experience) account if you’re the designated beneficiary.
Based on your income and filing status, you may claim a credit on your return for a percentage of the contributions you made to a qualified retirement plan.
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
The maximum credit is $1,000 ($2,000 for married taxpayers who are filing jointly), but is often less due to other deductions and credits and is limited by income. For more details on how to calculate your credit, see the IRS Saver's Credit page.
We’ll calculate this credit for you if you qualify and generate Form 8880.
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