SEP Contributions/Saver's Credit

[Valerie79]

My workplace retirement plan is a SAR-SEP IRA. When I enter my contributions to that and my Roth to get the Retirement Saver Credit, it says I've exceeded my allowed contributions and will have to pay some kind of penalty. It says I can only contribute $6,000 to my IRA. This is not right as I am allowed 25% of salary to SAR-SEP (and the amount I'm entering is well below that threshold) and $6,000 to Roth. Therefore, it's also removing my Saver's Credit. How do I fix this?

[VolvoGirl]

You do not enter the SEP-IRA under Deductions & Credits.  That is only for regular Traditional IRA and ROTH IRA.

Use the Search box.  Type in "self-employed retirement".  Clicking on "Jump to self-employed retirement" it should take you directly to the Self-Employed Retirement Plans screen.

Go to Federal

Income

Scroll down to Other Business Situations

Self Employed Retirement Plans

[VolvoGirl]

See this help article

Where to enter your SEP IRA contribution

https://ttlc.intuit.com/community/retirement/help/where-do-i-enter-my-sep-ira-contributions/00/26783

[Valerie79]

I am not self-employed. When I go there it says only for people who are self-employed and file Schedule C, F or K-1, which I do not. It them loops me back to business income options - I cannot proceed further.

[VolvoGirl]

Did you see my second post?  The link says.....If your employer made a SEP IRA contribution for you, then you don’t need to enter it in your return.

[Valerie79]

My employer didn't make any contributions for me.

[VolvoGirl]

I'll page someone else, @dmertz  do you know SEP IRA?

[Valerie79]

How do I get my saver's credit then? Employer didn't make a contribution, I did. But if I don't enter an amount in IRA part, it doesn't give me my credit even though I'm within the threshold for the credit.

[macuser_22]

If you are an employee then your SEP contributions should be on your W-2 in box 12 with a code "F".

[Valerie79]

Yes, and I entered as such. However, when I try to get the saver's credit, it says not eligible even though I definitely am eligible. 

[macuser_22]

Did you go through the Savers Credit (8880) interview.   Answer no to being a full time student?   Did you have any distributions?

What does is say that you do not qualify?

[Valerie79]

It says income is too high, but the phase out is $32k and I'm at $30k.

[macuser_22]

It is not just earned income, it is AGI on the 1040 line 8b.

[dmertz]

macuser_22 has covered this thoroughly.  If TurboTax says your income is too high to qualify, apparently you are filing Single. Married Filing Separately or Qualifying Widower and your AGI is above $32,000.

[Valerie79]

Sorry, I meant to say AGI. I work with accountants and they've reviewed my return and say I am indeed eligible, so I don't know what the issue is.