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Why TurboTax only includes my IRA cont. and do not includes my spouse 401(k) cont.to calculate saver's credit? I missing out on $93 extra dollar for dollar credit

IRA contribution is $3010 with $1667 distribution and 930 401k contributions and rate is 10% so credit should be (3010-1667+930)*10/100=$227 but turbotax is only showing (3010-1667)*10/100=$134
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1 Best answer

Accepted Solutions
dmertz
Level 15

Why TurboTax only includes my IRA cont. and do not includes my spouse 401(k) cont.to calculate saver's credit? I missing out on $93 extra dollar for dollar credit

TurboTax is correct.  The $1,667 distribution subtracts from your contributions ($3,010 - $1,667 = $1,343) and from your spouse's contributions ($930 - $1,667 but not less than $0 = $0).  That's the way the statute requires the calculation to be done.  See line 4 of your Form 8880 where $1,667 is required to appear in both columns..

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1 Reply
dmertz
Level 15

Why TurboTax only includes my IRA cont. and do not includes my spouse 401(k) cont.to calculate saver's credit? I missing out on $93 extra dollar for dollar credit

TurboTax is correct.  The $1,667 distribution subtracts from your contributions ($3,010 - $1,667 = $1,343) and from your spouse's contributions ($930 - $1,667 but not less than $0 = $0).  That's the way the statute requires the calculation to be done.  See line 4 of your Form 8880 where $1,667 is required to appear in both columns..

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