Solved: Why will Turbo Tax not give me the Retirement Savers Credit?
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Why will Turbo Tax not give me the Retirement Savers Credit?

I have paid into the South Carolina Retirement System all 32 1/2 years that I worked, through June of 2018, and have received the Credit each year.  Then I retired effective 6/30/18 and began receiving a retirement check.  No matter how I enter the info, Turbo Tax will not give me the credit for the 6 months' worth of contributions.  Can you explain to me the reason?

In SC, our Retirement System had a program called TERI.  We could retire and keep working and drawing our usual salary, and our retirement check was put into a TERI account--we did not receive it.  On June 30, 2018, it was rolled over into a 403 (b) account and it is still there.  I haven't touched it.  Could this be the reason?  I was told I didn't have to report it because I didn't receive it, but I'm trying to be honest.  I just want to know why I can't get the Saver's Credit for the 6 months I worked and contributed?  [removed]

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Level 15

Why will Turbo Tax not give me the Retirement Savers Credit?

For the purpose of this credit, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA. The credit is designed to help folks save for retirement, not reward them once they are retired. The year is looked at as a whole.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...


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Level 15

Why will Turbo Tax not give me the Retirement Savers Credit?

For the purpose of this credit, your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA. The credit is designed to help folks save for retirement, not reward them once they are retired. The year is looked at as a whole.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...


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New Member

Why will Turbo Tax not give me the Retirement Savers Credit?

Well, now, I wasn't looking to be "rewarded for retirement" but I made 12 contributions on 12 paychecks to the Retirement System, and I just thought I could have received a portion of the credit for those.  I do see, though, that the retirement checks I received from July - December do total more than my contributions.  After 32 1/2 years of working for the State, I had to retire to take care of my mother.  Do you work with taxes a lot?  You feel fairly certain this would be the reason why?  I probably won't keep searching for an answer if you feel confident about this.  This is the first year I've not received the credit but the program did not explain why not.  Thank you for your answer.
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Level 13

Why will Turbo Tax not give me the Retirement Savers Credit?

Did you receive a 1099-R for that rollover? Your eligible contributions may be reduced by any recent distributions you received from a retirement plan or IRA. However, rollovers that are not taxable should not do this - is your 1099-R taxable by some chance? You would need to see why that is.

Also there is an income limit over which you receive zero credit. For married filing joint, it is $63,000 or for any other status, it is $31,500.

See https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-save...




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New Member

Why will Turbo Tax not give me the Retirement Savers Credit?

Thank you, Bill.  Yes, I did receive 2 separate 1099-R's; one for the rollover distribution which was not taxed--it went straight to a 403(b) account.  I also received one for the 6 months' of retirement checks I have received, and it was taxed.  No danger on me reaching the income limit--I was definitely below the $31,500.  I will assume my 6 months' of retirement checks cancelled out my contributions.  I just wanted to make sure I could not receive the credit before submitting my taxes.  Thanks so much for your answer.
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