Retirement Savings Contributions Credit (Saver’s Credit)

[VolvoGirl]

Did you enter the IRA contribution you were planning to make into Turbo Tax yet?  Turbo Tax would tell you that you are not qualified to contribute.   Why were you asking about the Savings Credit?  Did you see the screen in Turbo Tax about making a IRA contribution to reduce your tax?  Everyone gets that,  even me and I’m retired.  It’s just marketing advertisement.  

[runnerdude]

@VolvoGirl somewhere on the web i saw something about a saver's tax credit ... and i clicked on it and eventually made my way to the IRS website ... i read the IRS website on the credit and i met all the requirements ... at least i thought i did ... or i thought i could ... ie, put $2K into an IRA and save a certain amount in taxes ... little did i know i couldn't put $2K in an IRA without earned income ... i couldn't even get out of the starting gate 🙂 !

[dmertz]

"the IRS website says you don't need earned income as a condition to claim the saving's credit"

It's doubtful that it says that anywhere.  It's likely that it says nothing about needing earned income and saying nothing about needing earned income is not the same as saying no earned income is required.

A prerequisite to claiming this credit is making a retirement contribution that you are eligible to make.  A prerequisite to making a retirement contribution is having compensation (earned income).  Therefore, having compensation is a prerequisite to claiming this credit.  A requires B and B requires C, therefore A requires C.  (To be a Catch-22 there would have to be contradictory requirements, and that's not the case.)