The retirement contributions savings credit is not calculating correctly. I qualify and have tried multiple times but keeps saying i don't. How can this be corrected?

[macgregor65]

The retirement contributions savings credit is not calculating correctly. I qualify and have tried multiple times but it keeps saying i don't. How can this be corrected?

[Anita01]

Why is it saying you don't qualify?

[macgregor65]

Isn't specific, just says "It turns out you don't qualify for this credit".

[macgregor65]

I meet all 4 requirements.

[SteamTrain]

What kind of contributions did you make?

And if  shown on your W-2...which box are those contributions shown?

[Anita01]

Are you being refunded all the tax you had withheld

[dmertz]

This credit is a nonrefundable credit.  It cannot be used to reduce your income tax below zero.  It cannot be used to reduce other taxes that are on Schedule 4.

[macgregor65]

401k contributions, box 12a on W2. $8001 withheld, $5031 refund. had refund last year and got the credit?

[dmertz]

For 2018 the standard deduction is double what it was in 2017.  The higher standard deduction has potentially reduced your taxable income to where your tax on Form 1040 line 12 is already zero without this tax credit.

[Coleen3]

Did you take a distribution?

[macgregor65]

100% was paid to fed taxes, no principle came to me.

[Coleen3]

If you took money out of an IRA or 401k, this could be the reason. Also, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...>
Line 4 Enter the total amount of distributions you, and your spouse if filing jointly, received after 2015 and before the due date of your 2018 return (including extensions) from any of the following types of plans. • Traditional or Roth IRAs (including myRAs), or ABLE accounts. • 401(k), 403(b), governmental 457(b), 501(c)(18)(D), SEP, or SIMPLE plans. • Qualified retirement plans, as defined in section 4974(c) (including the federal Thrift Savings Plan).
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f8880.pdf">https://www.irs.gov/pub/irs-pdf/f8880.pdf</a>

[dmertz]

A distribution that went all to tax withholding is still a distribution.  It's roughly equivalent to the distribution being paid to you which you then use to make estimated tax payments.

[macgregor65]

Got it. Just a confusing situation. Thanks!

[Coleen3]

If there was a distribution, regardless of whether or not you got the money in your hands, it counts.

Line 4 Enter the total amount of distributions you, and your spouse if filing jointly, received after 2015 and before the due date of your 2018 return (including extensions) from any of the following types of plans. • Traditional or Roth IRAs (including myRAs), or ABLE accounts. • 401(k), 403(b), governmental 457(b), 501(c)(18)(D), SEP, or SIMPLE plans. • Qualified retirement plans, as defined in section 4974(c) (including the federal Thrift Savings Plan).
https://www.irs.gov/pub/irs-pdf/f8880.pdf