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It's showing your total income and also the amount of the credit.
The credit is calculated on your Adjusted Gross Income.
It's just the way the programmers decided to show it. I assume if they only showed AGI, many people would be confused and think the program was not counting all their income.
If you look at your 1040 line 11 for your AGI, I'm sure you'll see that the credit was calculated using that amount.
HERE is how the Savor's Credit is computed
HERE is a link with more information from TurboTax
HERE is a link for how to look at your 1040 Online (Desktop users simply switch to Forms on the top right corner of the Home Screen)
No it says my income exceeds the maximum limit and shows the net income. My AGI qualifies me for the credit and is under the 76500 (married filing jointly) limit. It isn't pulling from the AGI line which is the issue. Because of that I'm automatically disqualified per the software due to it populating from the wrong field.
AGI for the purpose of this credit is AGI plus any exclusion or deduction claimed for:
It is possible you are not getting the credit due to other reasons not related to your income. If you took taxable distributions from your retirement account within two years prior to the due date of your tax return that would reduce or eliminate the amount of your retirement savings contribution credit. Also, the credit could not be more than your net federal income tax. Those may be reasons you are not getting the credit. You can learn more from this TurboTax article.
No. This is literally a software issue with what is being fed into the form.
I have no special circumstances.
What I have said several times over is that it is feeding information from my total net income into this form. This is happening because the AGI isn't calculated until the deductions and other savings portion is completed. Which the retirement savings contribution credit is completed before turbo tax compiles the AGI. So the software needs to be fixed.
I looked it up and it is something I have to enter manually on a desktop or just to a different software. Which I will probably do the later.
Thank you everyone for you not understanding what I was explaining and being insulting to my intelligence.
@Trollhunt87 wrote:"...... This is happening because the AGI isn't calculated until the deductions and other savings portion is completed. ....."
Something is not right with what you are saying though.
AGI is line 11 on your form 1040.....i,e, all your income Before any deductions.
(OK..mabe some miscellaneous subtractions from line 10...but not the big ones like the MFJ Std Deduction)
"Taxable income" is after major deductions...either the big Std Deduction for MFJ, or itemized deductions...but that is not AGI.
_________________
I'll go try a test file though to see what happens for MFJ AGI= 75,000
Worked OK for me.
MFJ.
...one spouse W-2 : 25,000 box 1...no retirement contributions
...second spouse W-2: 50,000 box 1...retirement contrib was: 10,000 box 12 code D (401k)
No interest, dividends or other income entered;
AGI....line 11 on 1040 is $75,000
.....Working thru the Savers Credit questions, in the interview for that credit:
........it generated $200 credit on line 12 of the form 8880 (10% of the $2000 limit)
................transfers as a $200 credit on Schedule 3 line 4...and also down to line 8
.............................which ends up as the $200 credit transferred to the 1040, line 20.
Don't see any problem there as long as you answered no to all the various questions in the Savers Credits interview.
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Even tried it with line 9 of the 1040 being 80,000 (i.e over the limit)
...put in a $5,000 deductible IRA contribution for the lowest earning spouse (no Retirment plan) .
....which puts $5,000 as a pre-AGI deduction on line 10 of the 1040
.........resulting in an AGI of 75,000 on line 11 of the 1040.
............The form 8880 then uses the 75,000 number, (and not the 80,000 which would have been over the limit)
.................resulting in a Savers Contribution credit of $400 ($200 for the original 401k person + $200 for the second)
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