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cbach
Level 1

Why does the intuit sw say not to enter IRA contributions and only asks for "additional contributions" to qualify for the saver's credit?

I contributed $6k to my Roth IRA and my AGI is below the threshold.  Shouldn't these contributions qualify for the credit?
3 Replies
macuser_22
Level 15

Why does the intuit sw say not to enter IRA contributions and only asks for "additional contributions" to qualify for the saver's credit?

Yes, but they are entered in the Roth IRA contribution interview, not in the Savers Credit interview.

 

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

A Roth IRA contribution does not actually go on a tax return, but you should enter it anyway to:

1) Tell you if your income qualifies you for a contribution and warn you if it does not.
2) Check if your income exceeds the limit to contribute to a Roth.
3) Track your contribution year-to-year if you use TurboTax every year.
4) Add the Retirement Savers Credit if you qualify.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
cbach
Level 1

Why does the intuit sw say not to enter IRA contributions and only asks for "additional contributions" to qualify for the saver's credit?

Thank you.  I had already entered my Roth IRA contribution in the appropriate section.  Yet when I got to "saver's credit" it asked if I made any "additional contributions" to a Qualified Retirement Plan.  When you click on definition of "additional Contribution" is says do NOT include contributions made to an IRA.  However, the system does not qualify me for the saver's credit unless I list the $6k here and then calculates $190 off of a $6k contribution, which seems to much.  Help? P.S. I am confident I am under the AGI requirement and meet all other parameters.

macuser_22
Level 15

Why does the intuit sw say not to enter IRA contributions and only asks for "additional contributions" to qualify for the saver's credit?

It works fine for me.   If I enter $5,000 as a Roth contribution in the IRA contribution sections the the 8880 has it on line 1.

 

Check the 8880 form and the 1040 form line 15.   Unless there is taxable income on line 15 there will be no savers credit.

Screen Shot 2021-02-06 at 2.44.14 PM.jpg

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
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